🔥Co-founder Monad: If a rate limit is set on collateral supply, the rsETH incident today could have avoided approximately $200 million in losses

Co-founder Monad Keone Hon stated that lending protocols for liquidity pools should set rate limits on collateral asset supply, for example, when the current supply is 100 million with an upper limit of 300 million, the supply should be allowed to grow to at most 110 million within 10 minutes, rather than depositing the entire 200 million at once. He pointed out that attack losses often depend on the scale of exit channels, and since lending protocols are the main exit route, introducing an intelligent cap mechanism can limit losses. Taking today’s rsETH incident as an example, this mechanism could have avoided about $200 million in losses. Hon recommended that asset issuers support such mechanisms and audit supply caps to reduce risks.