Circuit Breakers: Is ERC-7265 the Solution dApps Were Waiting For? - Ep. 515

This podcast episode delves into the world of Decentralized Finance (DeFi), specifically focusing on the proposal for a new standard called ERC-7265. This standard aims to implement circuit breakers in DeFi protocols to prevent malicious withdrawals by introducing a monitoring layer through which all funds flow, allowing teams to evaluate withdrawals and step in to mitigate potential harm. The discussion acknowledges the potential for centralization but highlights the importance of minimizing damage and ensuring responsible protocol management. The podcast also explores the use of circuit breakers to address economic attacks and price manipulation, their potential for abuse, and their limitations as a security measure. While not a perfect solution, circuit breakers are presented as a valuable tool for early-stage and centralized DeFi protocols to enhance security and protect against attacks.