I was a bit confused by this too, but perhaps he means that in an ideal system of universal skin-in-the-game, volatility and chaos will serve to optimize the sy

I was a bit confused by this too, but perhaps he means that in an ideal system of universal skin-in-the-game, volatility and chaos will serve to optimize the system by triggering failure for those who took risks unwisely and, therefore, providing negative/corrective feedback to the system overall. In other words, if you want a system to evolve robustness, you probably want to expose it to a diverse array of inputs.