Challenges of Implementing Circuit Breakers in DeFi

Reported 2 days ago

Experts argue that traditional market solutions like circuit breakers may not effectively address the chaos of decentralized finance (DeFi). While established financial markets use circuit breakers to manage volatility, the decentralized nature of cryptocurrency trading complicates their implementation. In a recent market crash, substantial liquidations highlighted the limitations of trying to impose familiar safety nets in a system where trading is continuous and spread across numerous platforms, suggesting that unique solutions for DeFi must be developed.

Source: YAHOO

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