Aave founder says DeFi lending needs emergency brakes like circuit breakers

Aave founder Stani Kulechov said at the Digital Asset Summit London that DeFi lending protocols need emergency braking mechanisms similar to circuit breakers. Kulechov said institutional investors participating in DeFi face constant risk, adding that immutability, or the difficulty of arbitrarily changing the rules or code of deployed smart contracts and protocols, is a terrible feature of DeFi. He warned that without emergency shutdown tools such as circuit breakers, it could take years to unwind a lending pool after an oracle error.