@martinbarth

Projects highly reliant on cross-chain bridges inherit systemic risks. Bridge hacks or pauses can freeze liquidity, destabilizing the entire ecosystem. To model impact, simulate scenarios where key bridges fail, assessing changes in token velocity, DEX activity, and circulating liquidity. Historical bridge attacks show ecosystem activity dropping 30–70% within days. Risk-adjusted valuation requires discounting projects with high bridge dependence or insuring via derivatives if available. Ultimately, resilient projects diversify bridging options or build redundancy. Investors must penalize fragile architectures to avoid catastrophic losses tied to bridge vulnerabilities.

0 reply

0 recast

0 reaction