Suyay
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The most common design error in DeFi (and why it keeps repeating)
When incentives govern architecture, collapse ceases to be a possibility and becomes a matter of time.
DeFi was built on a powerful promise: open, programmable financial systems that are resistant to human manipulation. However, after several cycles of euphoria, violent corrections, and silent bankruptcies, a disturbing pattern begins to emerge.
The biggest problem with DeFi is not the code, nor the regulation, nor even the volatility.
The most common and persistent mistake is to design protocols around short-term incentives, rather than around sustainable behaviors under stress.
DeFi was built on a powerful promise: open, programmable financial systems that are resistant to human manipulation. However, after several cycles of euphoria, violent corrections, and silent bankruptcies, a disturbing pattern begins to emerge.
The biggest problem with DeFi is not the code, nor the regulation, nor even the volatility.
The most common and persistent mistake is to design protocols around short-term incentives, rather than around sustainable behaviors under stress.
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