21’s View: Code is legislation, however human oversight is critical.
“I imagine in decentralization, however now we have to acknowledge that people are nonetheless a part of the equation. Sensible contracts don’t exist in a vacuum–builders construct them, and customers work together with them. We have to discover a stability between automation and accountability.”
He identified that true decentralization was meant to carry stability again to a system individuals now not trusted. But when DeFi fully removes human oversight, are we actually attaining stability — or simply shifting energy another way?
Glenn’s View: Code is just not legislation — authorized frameworks nonetheless apply.
“Ideally, we’d love for DeFi to be ruled purely by sensible contracts, however in actuality, governments don’t acknowledge code because the legislation. When issues go incorrect, it’s not the sensible contract that determines legality — it’s the real-world authorized system.”
We pointed to the Mango Markets exploit, the place an attacker manipulated a protocol’s worth oracle to empty over $100 million, claiming it was a “worthwhile buying and selling technique.” But, authorized authorities noticed it as market manipulation, and the attacker now faces costs.
The takeaway?
Whereas code is legislation could be a guideline in DeFi, it doesn’t essentially align with how jurisdictions implement rules.
