Unchained The Chopping Block: 'Code Is Law' Is 'Obviously Not How Anything Works Ever' - Ep. 411
Oct 22, 2022
Crypto insiders dive into Laura's controversial interview with Do Kwon, dissecting the line between failure and fraud. They discuss the recent Mango Markets hack and the hollow notion that 'code is law.' The BNB hack raises alarms about decentralization vulnerabilities. A heated debate emerges over NFT royalties as Magic Eden introduces optional fees. The hosts speculate on how creators might navigate these changes and ponder whether NFTs should be classified as securities, blending humor with serious insights in the fast-evolving digital asset landscape.
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Mango Markets Exploit
- Avi Eisenberg exploited Mango Markets, manipulating token prices to drain funds.
- He proposed keeping $40 million as a "finder's fee," which governance shockingly approved.
Code is Not Enough
- Haseeb Qureshi views Eisenberg's actions as illegal market manipulation, despite being "code as law."
- He believes this highlights the need for stronger community responses and ethical considerations in DeFi.
Dynamic Risk Management
- Tarun Chitra advises DeFi protocols to dynamically adjust risk parameters, especially when using native tokens as collateral.
- Bootstrapping with native tokens works well in bull markets, but requires careful management during downturns.