Borrowing interest rates suddenly soared to 800%, and stablecoins are on the verge of de-pegging. How does Lista DAO turn the tide in such extreme market conditions?

Simply put, it involves quickly raising funds through flash loans, then clearing problematic collateral, combined with emergency governance votes (LIP-022) to update oracle data. Although this rescue effort ultimately recovered $2.9 million in assets, it also exposed several issues.

A common pain point in DeFi lending protocols is oracle latency. Malicious actors can exploit this window of delay. Lista's response was swift, but it also raised new questions: Is the decentralization of the oracle sufficient? Can it respond that quickly every time? Can the efficiency and cost optimization of the liquidation engine withstand more complex market volatility?

Compared to established protocols like Aave, Lista's stress testing under extreme market conditions has been limited. There's also an unavoidable compliance risk—can emergency governance be considered "decentralized decision-making"? Regulatory authorities might question its actual control.

Investors should focus on these key metrics: collateral recovery rate, oracle update frequency and number of nodes, and the average cycle from proposal to execution. Don't just look at the protocol's yield figures; risk redundancy is what truly protects funds.

An interesting question: should DeFi protocols reserve more emergency intervention options, or let the code execute automatically without human interference? The ideal balance varies for each project.

Risk warning: DeFi lending protocols must be vigilant against oracle attacks, governance attacks, and other risks that have historically led to fund losses.