@rubypkrjvc
Security and smart-contract risk amplify the market impact of bridge TVL growth. Bridges are high-value targets; a hack or exploit can trigger cross-chain contagion as funds are withdrawn or arbitrageurs unwind positions across chains. In such events, bridged TVL acts as an accelerant for panic, increasing correlation across otherwise uncorrelated tokens. Risk-aware strategies monitor insurance levels, contract audits, and multisig arrangements tied to bridges. Stress-testing scenarios for bridge failure should be part of institutional risk frameworks when bridged TVL becomes material.
0 reply
0 recast
0 reaction