Risk isolation - Building Single Purpose Protocols

DeFi Security Summit 2024 · 8 Nov 2024 · 10:52

Merlin Egalite of Morpho Labs argues that layering audits and bounties on large, upgradeable protocols misses the root cause of DeFi hacks, which is design. He proposes design principles applied before any code is written: minimise governance, favour immutability so integrators are not forced to follow upgrades, and keep protocols narrow in purpose. The talk uses Uniswap and Morpho's lending markets as examples of risk isolation at the architecture level.

Speakers

• Merlin Egalite

Topics

• DeFi
• Lending & Borrowing
• Security

From DeFi Security Summit 2024, hosted by DeFi Security Summit.