Most DeFi protocols claim to be decentralized. Most of them also retain the ability to upgrade their contracts. So why do so many refuse to use that power to protect their users when an attack happens? Ether.Fi CEO Mike Silagadze calls it “decentralization theater” — and says it needs to stop.

In this segment from Unchained, Mike makes the case for why every serious protocol needs a hard pause button, a blacklist mechanism, and the ability to pull attacker funds through a decentralized process. Security Alliance certifications lead Isaac Patka agrees — and walks through the three-multisig architecture that he argues should be the baseline standard for any protocol serious about user safety. They also dig into the security council problem: what it’s supposed to do, how it’s being misused, and where the line is between protocol safety and subjective moral decisions.

Host:

• • Laura Shin, Host, Unchained

Guests:

• • Isaac Patka, Certifications Lead at Security Alliance & Co-founder of Shield3
  • Mike Silagadze, CEO of Ether.Fi

This clip is from a longer conversation. Full episode here.

Sponsor:

• • Coinbase: Get 20% off the first year of your Coinbase One annual plan at coinbase.com/unchained.