Circuit Breakers in DeFi? Why Experts Say Managing Chaos On-Chain Isn't That Easy► https://t.co/sdN0Z1dR9z https://t.co/sdN0Z1dR9z ...

Core Insights - Cryptocurrency prices experienced significant volatility, with over $19 billion in liquidations occurring last Friday, highlighting the challenges of applying traditional financial safeguards to decentralized finance (DeFi) [1][2][4] Group 1: Market Dynamics - The cryptocurrency market's decentralized nature complicates the implementation of market-wide trading halts or circuit breakers, which are effective in traditional finance [3][4] - Some market makers, such as Wintermute, ceased trading during the recent Bitcoin crash due to deteriorating market conditions [4] Group 2: Expert Opinions - Amanda Tuminelli from the DeFi Education Fund emphasized that DeFi lacks a central control mechanism, stating "there is no off button" for networks and assets [2][3] - Tuminelli also noted that while restrictions could be placed on the "front ends" of services connecting to DeFi protocols, the existence of multiple access points could undermine their effectiveness [5] - Gregory Xethalis from Multicoin Capital warned that attempting to impose traditional market safeguards in DeFi could exacerbate price discrepancies across different venues [6]