Monad Co-founder: It is recommended to set a dynamic cap for collateral assets deposited in lending protocols to tighten the hacker exit channels.

Deep Tide TechFlow News, on April 19th, Monad co-founder Keone Hon stated that if a pooling lending protocol allows an asset to be used as collateral, it should set a rate limit for its supply increase rather than opening it all at once to the maximum supply limit. For example, if the current supply is 100 million and the cap is 300 million, only an increase to 110 million should be permitted within the next 10 minutes. He pointed out that this can limit the scale of exit paths in the event of heterogeneous asset hacks, especially in cases of infinite minting vulnerabilities, thereby reducing the impact of attacks.

Keone Hon believes that lending protocols are usually the largest exit channels for related assets. If the “smart cap” is initially set slightly above the current supply and gradually adjusted to the true cap over several hours, risk control can be significantly improved, and this could have prevented today’s approximately $200 million loss for rsETH depositors.