The co-founder of Monad has come up with an interesting proposal. Looking at recent major loss incidents related to rsETH, there's a growing discussion that there might be fundamental issues with protocols related to liquidity pools.

What Keone Hon is saying is that instead of allowing a large amount of assets to be supplied all at once, it should be increased gradually. For example, at a pace of adding $10 million every 10 minutes. This approach helps build resilience against problems like the "infinite minting vulnerability."

In short, implementing a smart cap system is key. Start with a supply limit slightly higher than the current amount, then gradually adjust it to the true cap over time. This method could have significantly reduced the large losses suffered by rsETH depositors.

Hon emphasizes that asset issuers need to properly support such mechanisms. They should ensure normal user operations are unaffected while minimizing exit routes from external sources. In other words, a high supply cap may look strong on paper, but it actually represents a potential risk. It seems that the importance of safety design is being re-recognized across DeFi protocols, including Monad.