Circuit Breakers in DeFi? Why Experts Say Managing Chaos On-Chain Isn't That Easy

Cryptocurrency prices plummeted last Friday as cascading liquidations fueled historic volatility, yet some experts are saying that Wall Street’s old-school safety net wouldn’t have helped. In the U.S., venues like the Nasdaq and New York Stock Exchange have used circuit breakers to promote orderly trading since 1988, following the stock market crash known as Black Monday. They found that investors needed more time to react to changing market conditions. In traditional finance, a “timeout” may reduce panic s ...