21’s View: Code is legislation, however human oversight is important.
“I imagine in decentralization, however now we have to acknowledge that people are nonetheless a part of the equation. Good 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 deliver stability again to a system folks now not trusted. But when DeFi utterly removes human oversight, are we actually reaching stability — or simply shifting energy differently?
Glenn’s View: Code will not be legislation — authorized frameworks nonetheless apply.
“Ideally, we’d love for DeFi to be ruled purely by good contracts, however in actuality, governments don’t acknowledge code because the legislation. When issues go improper, it’s not the good 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 value 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 prices.
The takeaway?
Whereas code is legislation may be a guideline in DeFi, it doesn’t essentially align with how jurisdictions implement laws.
