Vitalik wants DeFi price crashes to stop triggering automatic liquidations

Kwon Crash

Published Jun 3, 2026, 3:26 PM UTC

Source: CryptoSource
- Vitalik wants to kill DeFi liquidations because he hates watching moonboys get rekt. His fix? Swap hard cliffs for "gentle drifts" via options. Basically, instead of your position vanishing instantly when ETH dumps, it just slowly stops working like you wanted until you manually rebalance. It’s the financial equivalent of a slow leak instead of a blowout tire. Sure, it saves you from being front-run by liquidators during a flash crash, but it also means you can’t just set it and forget it. You have to actually pay attention. Good luck with that. The market doesn’t care about your feelings, but at least this design won’t turn a 5% dip into a $400M wipeout. Try not to drift into bankruptcy.