HARDEN DEFI

“I mean, changing the binaries, managing to carry out a DDoS at just the right time and being able to then trick the RPC nodes into essentially providing a view of the world. It's all quite sophisticated and clearly, I think it looks like a nation state level, so I think the Lazarus attribution is probably correct.”

“If we're saying it's nation state actors with their tremendous resources against individual protocols, the protocols will lose with certainty. However, you can still flip that security framework on its head if we make it a chain of things that have to fail with a redundant response across the ecosystem. Because the Lazarus Group, breaking a single protocol is relatively easy, but breaking eight protocols simultaneously, all of which work differently, becomes so complex.”

“AI is a great tool, but it's an arms race, right? It can be used by the good guys and the bad guys. I do think teams need to be using it much more than they could auditing end-to-end, absolutely everything, using AI, and getting their hands on the best possible tools. I think you see a lot of security firms are working to bring these tools out now, and increasingly teams are using this, but it's also in the hands of the bad guys, and they're very, very effective operators.”

“The two problems with private credit are illiquidity and lack of transparency. Stretch is liquid and transparent. And so I think you're going to see people typically look at preferred stocks and they're like, well, it's this tiny bit of the market and like the TAM is not really going to grow. But I think it's going to grow massively because you're going to see this huge wave of capital moving out of private credit.”

“I do agree that the default setup that's out of the box for people to use is probably not great, and I think it's something like 40 percent of people do tend to use that setup. So they're saying it's mainly the fault of KelpDow for not modifying that and going further. But I think there's some truth in that. Obviously, there's 60 percent of people, including Euler and all these other projects, that decided to use more DVNs.”

“JPMorgan Research has pointed out that yield-bearing stables are growing significantly faster than traditional stables. I would call it 15X faster right now, though. Noting for everybody, coming off a small denominator is much easier than coming off a large denominator. 15X size from current non-yield-bearing stable coins would be a giant amount of money.”

“Micro strategies, STRC or stretch instrument as they call it is the most traded, most liquid and largest preferred stock ever in history. Preferred stocks are kind of a somewhat niche area of the market. But interestingly, and many people don't know this, stretch's IPO was actually the largest IPO of 2025, full stop. Larger than circle, larger than any other asset IPO. It has really been catching on now.”

“Micro strategies, STRC or stretch instrument as they call it is the most traded, most liquid and largest preferred stock ever in history. Preferred stocks are kind of a somewhat niche area of the market. But interestingly, and many people don't know this, stretch's IPO was actually the largest IPO of 2025, full stop. Larger than circle, larger than any other asset IPO. It has really been catching on now.”

“JPMorgan Research has pointed out that yield-bearing stables are growing significantly faster than traditional stables. I would call it 15X faster right now, though. Noting for everybody, coming off a small denominator is much easier than coming off a large denominator. 15X size from current non-yield-bearing stable coins would be a giant amount of money.”

“The two problems with private credit are illiquidity and lack of transparency. Stretch is liquid and transparent. And so I think you're going to see people typically look at preferred stocks and they're like, well, it's this tiny bit of the market and like the TAM is not really going to grow. But I think it's going to grow massively because you're going to see this huge wave of capital moving out of private credit.”

“The belief that transactions are, call it optimistically correct, has to be discarded in this environment. You're clearly getting enough hacks that all large transactions should probably be viewed with some degree of skepticism. And I don't know if that means delays with drawing for protocols, choke points on bridges, needing significantly larger shares of votes to move assets.”

“I do agree that the default setup that's out of the box for people to use is probably not great, and I think it's something like 40 percent of people do tend to use that setup. So they're saying it's mainly the fault of KelpDow for not modifying that and going further. But I think there's some truth in that. Obviously, there's 60 percent of people, including Euler and all these other projects, that decided to use more DVNs.”

“The belief that transactions are, call it optimistically correct, has to be discarded in this environment. You're clearly getting enough hacks that all large transactions should probably be viewed with some degree of skepticism. And I don't know if that means delays with drawing for protocols, choke points on bridges, needing significantly larger shares of votes to move assets.”

“If we're saying it's nation state actors with their tremendous resources against individual protocols, the protocols will lose with certainty. However, you can still flip that security framework on its head if we make it a chain of things that have to fail with a redundant response across the ecosystem. Because the Lazarus Group, breaking a single protocol is relatively easy, but breaking eight protocols simultaneously, all of which work differently, becomes so complex.”

“I mean, changing the binaries, managing to carry out a DDoS at just the right time and being able to then trick the RPC nodes into essentially providing a view of the world. It's all quite sophisticated and clearly, I think it looks like a nation state level, so I think the Lazarus attribution is probably correct.”

“AI is a great tool, but it's an arms race, right? It can be used by the good guys and the bad guys. I do think teams need to be using it much more than they could auditing end-to-end, absolutely everything, using AI, and getting their hands on the best possible tools. I think you see a lot of security firms are working to bring these tools out now, and increasingly teams are using this, but it's also in the hands of the bad guys, and they're very, very effective operators.”