Crush

The @THORChain situation... - Node operators voted this evening to pause Lending and Savers withdrawals. Deposits had been turned off a year ago as the community became increasingly concerned with the risk. - Remaining debts and collateral positions from Lending and Savers are now frozen, and the community needs to figure out a way to address them. Thorchain is one of the most profitable protocols in the ecosystem, and there are likely multiple reasonable paths toward good resolution. - Lending and Savers were two additions to Thorchain which were experimental. At this point, it's clear these designs failed, they were too risky. While these functions were not core to the protocol, their risk has been a dismal overhang for a while--nobody was sure how long it would take for users to clear out their positions. - One of the major lessons is to avoid risky experiments at the base layer of these protocols, moving them to app layers where failure can be more graceful. This is an important design principle that the defi ecosystem should learn from. The lesson is not to stop experimenting, it is to mitigate risks when untested, and *assume* failure. Double-down on adversarial thinking; Thorchain did this well with its core DEX protocol, but failed in carrying forth that discipline into Lending and Savers. - The Thorchain DEX (and blockchain) itself remains operational, swaps are not interrupted. - LP's can deposit and withdraw also without issue Permissionless cross-chain liquidity pools built on multi-party computation remains one of the most excellent demonstrations of decentralized financial technology ever built. I remain an ardent supporter.