DeFi automation has developed too quickly in recent years, but it has also exposed a fundamental pain point—once on-chain operations are executed, they cannot be revoked. If there is a dispute over the outcome, it all depends on the records of how decisions were made initially. The problem is that many protocols simply cannot clearly explain why a particular transaction was triggered, where the data came from, how it was calculated, or when it was recorded. These details are often fuzzy.
It seems like the missing piece is data? Not quite. Market data is everywhere; what’s truly lacking is the "ability to verify decision-making basis afterward." Operations like liquidation and settlement are triggered and executed immediately—no one will wait for your response. After a transaction is completed, the only witness is the on-chain record. If these records are untraceable or illogical, no matter how you argue that the outcome is "not a technical issue," it’s useless. Ultimately, investors still have to bear the risk.
More critically, this applies to high-risk scenarios—such as emergency liquidations before liquidation, or complex cross-chain bridge operations. Whether you can clearly explain "why this plan was chosen" directly determines whether disputes can be resolved afterward. A reliable protocol should lock down data sources, processing logic, trigger times, and reasons for execution—all updates should be thoroughly documented. This way, even if disputes arise later, they can be traced and verified.
Of course, this means sacrificing some flexibility and increasing system complexity. But compared to rapid responses that cannot be explained afterward, this trade-off is worthwhile. True competitiveness isn’t about who updates data faster, but about who can stand firm when problems occur.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
4
Repost
Share
Comment
0/400
FudVaccinator
· 12h ago
It's the same old story, but to be honest, at the moment of liquidation, who the hell has the time to keep thorough records?
It's like asking a captain in a heavy rainstorm to meticulously document every steering decision—completely hindsight nonsense.
View OriginalReply0
OnchainFortuneTeller
· 12h ago
Basically, DeFi went overboard with automation. Once it's executed on the chain, there's no turning back, and you can't even shift the blame afterward. That's the real trap.
View OriginalReply0
VitaliksTwin
· 12h ago
Basically, DeFi now is all about shifting blame. Whenever something happens, it's all the market's fault, and on-chain records are so vague that it’s as if they don’t exist.
Someone really needs to nail down the decision-making processes of these protocols; otherwise, each liquidation is more brutal than the last, and afterward, they can't even explain why they did it.
Instead of racing for speed, it's better to focus on transparency—that's the true way to survive in the long run.
View OriginalReply0
BuyTheTop
· 12h ago
Basically, it's black-box operation, and no one can hold anyone accountable.
DeFi automation has developed too quickly in recent years, but it has also exposed a fundamental pain point—once on-chain operations are executed, they cannot be revoked. If there is a dispute over the outcome, it all depends on the records of how decisions were made initially. The problem is that many protocols simply cannot clearly explain why a particular transaction was triggered, where the data came from, how it was calculated, or when it was recorded. These details are often fuzzy.
It seems like the missing piece is data? Not quite. Market data is everywhere; what’s truly lacking is the "ability to verify decision-making basis afterward." Operations like liquidation and settlement are triggered and executed immediately—no one will wait for your response. After a transaction is completed, the only witness is the on-chain record. If these records are untraceable or illogical, no matter how you argue that the outcome is "not a technical issue," it’s useless. Ultimately, investors still have to bear the risk.
More critically, this applies to high-risk scenarios—such as emergency liquidations before liquidation, or complex cross-chain bridge operations. Whether you can clearly explain "why this plan was chosen" directly determines whether disputes can be resolved afterward. A reliable protocol should lock down data sources, processing logic, trigger times, and reasons for execution—all updates should be thoroughly documented. This way, even if disputes arise later, they can be traced and verified.
Of course, this means sacrificing some flexibility and increasing system complexity. But compared to rapid responses that cannot be explained afterward, this trade-off is worthwhile. True competitiveness isn’t about who updates data faster, but about who can stand firm when problems occur.