The Centralized Risk of DeFi
summary
Argues that on‑chain governance remains a live attack vector (flash‑loan MKR vote) and suffers low participation often under 10%, creating centralizing delegate power and regulatory control points; centralized stablecoins (USDC/USDT) dominate supply while DAI just passed ~$1–2B, increasing custodial counterparty risk. Describes RAI: a Maker fork that is governance‑minimized, ETH‑backed only and uses a PID controller to set rates; a testnet peaked at 600k TVL and successfully stabilized price and exercised global settlement.
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chapters (15)
- 0:00Intro
- 1:47History
- 2:50Economic attacks
- 3:10Governance attacks
- 4:05Governance attack example
- 5:11Governance fatigues
- 7:35What really needs governance
- 10:59Price of governance tokens
- 11:47The rise of counterparty risk
- 12:22DeFi will succeed
- 12:47Stablecoin market share
- 13:19US dollar dependency
- 14:07Why US dollars
- 16:13Rye
- 18:11Control Theory
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