Interesting thread.
The $6.2M isn't really about curators being slow. It's about a deeper architectural assumption β that risk management can be a role instead of a primitive.
When you step back, institutional DeFi needs three risk layers solved at the protocol level:
1. Depeg risk β does the peg hold?
2. Price risk β does the collateral hold?
3. Credit risk β does the borrower hold?
Most of what exists today solves these with people and permissions. The interesting question is what happens when you solve them with math.
When you're originating hundreds of loans a day across multiple collateral types, you can't have humans in the loop deciding if the market is dangerous. The pricing model already knows.
We're closer to this than most people think.
1/ Millions in bad debt, at the time of writing, were created across Gauntlet's Morpho vaults from the Resolv USR exploit.
Almost all of it was supplied ** after ** the exploit.
So why would curators supply millions in USDC to a broken market?
Letβs dive in.