DeFi Is Optimizing For gas, Not For Markets
Cointelegraph
DeFi protocols prioritize gas efficiency over complex financial modeling, creating systemic risks during periods of high market volatility.Summary
Decentralized finance (DeFi) has largely prioritized computational minimalism to minimize gas fees, resulting in rigid financial systems that struggle during market stress. Because current blockchain execution environments lack the capacity for complex, iterative risk modeling, protocols rely on static collateral ratios and fixed formulas rather than dynamic, adaptive responses. This architectural limitation forces sophisticated financial decision-making off-chain, undermining transparency and decentralization. The author argues that for DeFi to scale responsibly, it must evolve to treat computation as a core primitive, enabling on-chain, complex risk assessment that can handle real-world market volatility.
(Source：Cointelegraph)