AAVE Founder: DeFi Borrowing Agreement Needs to Introduce a Circuit Breaker Mechanism
2026-11-12 13:56:24
According to CoinMeta, Stani Kulechov, the founder of AAVE, stated at the DAS London summit held on November 11 that DeFi should not regard the immutability of smart contracts as the highest principle, and lending protocols need to introduce a circuit breaker mechanism similar to that of traditional financial markets. He warned that in the event of a malfunction in the oracle, lending pools lacking an emergency intervention mechanism might take several years to resolve the risks. In April of this year, KelpDAO suffered an attack worth approximately $292 million, resulting in a capital outflow of about $8.45 billion from AAVE within 48 hours. Kulechov advocates for risk isolation and emergency freezing mechanisms to prevent further losses from a single failure.
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