Monad Innovation Keone Hon: Loan agreements should limit the supply rate of collateral assets
AiCoin|Apr 19, 2026 08:12
According to Monad's Keone Hon article, lending agreements should set rate limits on the supply of collateral assets. For example, the current supply is 100 million, the supply ceiling is 300 million, and it can grow up to 110 million within 10 minutes, rather than depositing 200 million at once. This can reduce losses caused by attacks, as rsETH depositors could have avoided approximately $200 million in losses. Hon also mentioned that asset issuers should support this mechanism, and a high supply ceiling should be seen as a risk rather than a symbol of strength. He gave an example that the Hyperbridge DOT attack did not cause a loss of 100 million due to the limited exit path, while the Resolv attack caused a loss of 240 million instead of 200 million due to the limited path size. Hon suggests auditing and reducing unnecessary supply caps.
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