CoinDesk
Stablecoin issuer safeguards under the GENIUS Act do not protect DeFi lenders from changes to loan terms or faulty price feeds, Ajna co-founders Mike Hathaway and Joseph Quintilian argue. Federal Reserve proposals include reserve, capital and risk-management requirements for issuers, as well as redemption within two business days.
The authors point to a Moonwell governance vote that set up a feed valuing Coinbase Wrapped Staked ETH (cbETH) at about $1.12 instead of roughly $2,200, leaving about $1.78 million in bad debt. They also cite an Aave risk-tool setting that undervalued Lido's wrapped staked ether (wstETH) by about 2.85%, triggering roughly $27 million in liquidations.
Ajna uses no oracle and says its pool rules cannot be changed once live. The trade-off, the authors acknowledge, is that a flaw cannot be patched in place; users must choose to move to a new version.
Frequently asked questions
-
Which stablecoin issuer safeguards are included in the Federal Reserve proposals?
The proposals include reserve, capital and risk-management requirements, as well as redemption within two business days.
-
How can governance affect a DeFi loan after funds are deposited?
Governance can change lending-market terms, including collateral rules, liquidation thresholds or interest rates, depending on the market.
-
What happened when Moonwell's cbETH price feed malfunctioned?
The feed valued cbETH at about $1.12 instead of roughly $2,200, leaving about $1.78 million in bad debt.
-
How did an Aave risk-tool setting affect wstETH liquidations?
The setting undervalued wstETH by about 2.85%, triggering roughly $27 million in liquidations.
-
What is the trade-off of Ajna's unchangeable pool rules?
Ajna says live pool rules cannot be changed, but a flaw cannot be patched in place. Users must choose whether to move to a new version.
Glassnode
CryptoSlate
Lookonchain
WuBlockchain