21’s View: Code is legislation, however human oversight is important.
“I imagine in decentralization, however we’ve got to acknowledge that people are nonetheless a part of the equation. Sensible contracts don’t exist in a vacuum–builders construct them, and customers work together with them. We have to discover a steadiness between automation and accountability.”
He identified that true decentralization was meant to deliver steadiness again to a system individuals now not trusted. But when DeFi utterly removes human oversight, are we actually attaining steadiness — or simply shifting energy otherwise?
Glenn’s View: Code just isn’t legislation — authorized frameworks nonetheless apply.
“Ideally, we’d love for DeFi to be ruled purely by good contracts, however in actuality, governments don’t acknowledge code because the legislation. When issues go flawed, it’s not the good contract that determines legality — it’s the real-world authorized system.”
We pointed to the Mango Markets exploit, the place an attacker manipulated a protocol’s worth oracle to empty over $100 million, claiming it was a “worthwhile buying and selling technique.” But, authorized authorities noticed it as market manipulation, and the attacker now faces costs.
The takeaway?
Whereas code is legislation is perhaps a guideline in DeFi, it doesn’t essentially align with how jurisdictions implement laws.
