“no playbook on how to wind down a DeFi protocol”
Hot take: If a DeFi protocol can be shut down it wasn’t a DeFi protocol in the first place.
The problem is not giving DeFi founders a way out.
It is DeFi founders building a “way out” in the first place.
Till death do I part.
Let me be clear what I am saying and not saying:
I am NOT saying: let's forcibly shut down protocols (we can't), or let's only use the largest ones, or that teams shouldn't build new protocols.
I AM saying: there are a lot of zombie protocols out there with basically the front doors unlocked and no one inside anymore. These are like blighted homes and we need to get rid of them, or the whole neighborhood will suffer.
The way we change that is by CHANGING THE NORMS around shutdowns and giving these founders a graceful way to exit. Right now there is no playbook on how to wind down a DeFi protocol, and we need to make one, ASAP.