Broken by Design: How Flawed Tokenomics Can Destroy a DeFi Protocol From Within
Not every DeFi catastrophe begins with a malicious actor. Some of the most devastating collapses in decentralized finance have been engineered — unintentionally — by the protocols themselves, through incentive structures that looked sound on paper but proved lethal under real market conditions. Understanding how algorithmic feedback loops can spiral out of control is essential knowledge for any serious DeFi investor.