Preventing Cascading Liquidations and Systemic Risks in DeFi

"If you don’t know the cost of attack, an attacker will calculate it for you." - Brenda Loya, Co-founder & CEO, Tellor In this talk, Teller breaks down how fast data and stale assumptions can trigger cascading failures in DeFi. From oracle delays and flash loan exploits to poor fallback design, systemic risk is rising—and protocols need stronger safeguards. This is a crash course in how to build resilient, credible DeFi systems that don’t collapse under pressure. --- 00:01 Intro to DeFi Risk and Oracles 00:36 DUSD Trade Triggers $500K in Liquidations 01:15 How Oracle Data Flows Work 02:45 Missing Monitors and Liquidity Caps 03:43 Why Protocol Assumptions Must Evolve 04:17 Smarter Data Aggregation and API Checks 05:26 7 Layers of Oracle Security 06:37 Case Study: Hyperliquid Vault Exploit 07:42 Balancing Social Fallbacks and Credible Neutrality 08:18 The USDC Depeg and Its Ripple Effects --- Explore Upcoming Events 👇 ➣ Stable Summit III: Devconnect • Website: https://www.stablesummit.xyz/ • Email: info@stablesummit.xyz • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/devconnect2025?typeform-source=www.stablesummit.xyz ➣ Stablecoin Summit: Singapore by XREX & Unitas • Website: https://stablecoinsummit.com/ • Email: team@stablecoinssummit.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/stblcoin3?typeform-source=stablecoinsummit.com ➣ Blockchain Oracle Summit: Devconnect • Website: https://blockchainoraclesummit.io/ • Email: info@partyactionpeople.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/BOS25apply ➣ Listen to the Stable School Podcast Link: https://stableschool.org/podcast ➣ Follow Stable Summit on X Link: https://x.com/stable_summit — About: By Stake Capital Group and Party Action People, and presented by Curve Finance, Stable Summit has been gathering leaders in stablecoins almost quarterly since 2023. Our content is curated through hours of one-on-one research with the leading minds in the stablecoin space. Each program is a highlight reel of what leaders in stables are curious about in real time. Our audience consistently features the full spectrum of the stablecoin ecosystem, from DeFi protocols to institutions, from stablecoin issuers to central banks, and every llama in between.