Today's price moves in crypto are a strong argument for industry wide circuit breakers. The crypto markets structurally broke today & leading exchanges need to work together to prevent a repeat.
@CiaraHuobi
126
76
162
Conversation
There is a reason there are circuit breakers in traditional markets. They work.
Also, flash loans are a terrible idea. Financial systems need time to settle. Instant txn's involving millions of dollars is dumb. Human oversight is important to prevent systemic failures.
1
2
What is that reason and who are they working for? Traditional markets are monopolies so it’s not a fair comparison.
I don't understand the question....
My point is that circuit breakers add stability to a (leveraged) system, allowing cooler heads to prevail. A downward liquidation spiral to zero helps no one. Who gives a shit if your new financial system is "decentralized" if it's fragile?
1
2
Leverage is dangerous without any checks. If crypto was unlevered? Fine. Let the market work. But we now have crazy 100/1 levered futures. This creates systemic fragility. Either incorporate circuit breakers or get rid of the leverage.
1
2
Show replies