TechFlow News, April 19: Keone Hon, co-founder of Monad, stated that pooled lending protocols—when permitting an asset as collateral—should impose rate limits on supply increases rather than opening the maximum supply cap all at once. For example, if the current supply is $100 million and the cap is $300 million, the protocol should allow the supply to increase only to $110 million within the next 10 minutes. He noted that this approach would constrain the scale of exit paths in the event of a hack targeting heterogeneous assets—particularly those exploiting infinite minting vulnerabilities—thereby limiting the impact of such attacks.
Keone Hon believes lending protocols are typically the largest exit channel for related assets. Implementing “smart caps”—initially set slightly above the current supply and gradually adjusted over several hours to the true cap—would significantly improve risk control and could have prevented today’s approximately $200 million loss to rsETH depositors.
