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Talking about "security" in DeFi, this term has been overused. Upon closer inspection, projects generally rely on two approaches to provide a sense of security: either they confidently claim to be fully backed or they boast about their mechanism being foolproof.
But everyone who has experienced multiple bull and bear cycles knows—security is never about promises made verbally, but whether the system architecture itself can hold up.
**The key lies in risk isolation, not in risk elimination**
The core issue for many protocols isn't whether problems will occur, but whether they can be contained once they do. The most feared scenario is a localized failure triggering a full-chain collapse. From an architectural perspective, some projects are actually doing the opposite—they put all their eggs in one basket, creating single points of overload, lacking redundancy and checks and balances.
What is a smarter approach? Acknowledge that problems will inevitably happen, but tightly contain their impact. This means focusing on several critical aspects: reducing pressure on individual modules, setting up multiple exit points to prevent path dependency, and ensuring different parts do not operate in complete synchronization. These seemingly "conservative" choices essentially cut off the domino effect of risks.
**Clear division of responsibilities > stacking parameters**
Many projects deal with risk in a very straightforward and crude way: adding collateral, lowering discount rates, tightening parameters. On the surface, this seems foolproof, but in reality, it has significant downsides—making the system increasingly bloated, reducing flexibility, and making it hard to adapt to market changes.
A different approach is needed. Instead of pushing all defenses into one place, it’s better to clearly divide responsibilities: one module handles pressure, another acts as a buffer zone, another is responsible for recovery mechanisms, and yet another controls the overall rhythm. This decentralized design actually makes the system more resilient, and single points of failure won't cause major waves.
This is the true source of security.