Tarun Chitra, Co-Founder & CEO of Gauntlet, joins us to talk about the evolution of DeFi lending, the shift toward active vault management, and recent high-profile security exploits like Resolve and KelpDAO. We dive into the hidden risks of restaking protocols, the friction between DAO ideologues and risk curators, open-source versus closed-source infrastructure vulnerability, and how AI agents are shaping both cyberattacks and defensive measures in Web3.

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Notes: * North Korea stole $800M from Bangladesh bank. * Some re-staking protocols had LTVs up to 0.98. * DAO parameters often update only once a week.

Timestamps: 00:00 Start 00:16 DeFi vibe check 01:44 Vaults in DeFi 06:13 Actively managed vaults 14:21 Collateral risks 19:00 Attack learnings 21:37 KelpDAO 29:11 Transperency 30:15 Composibility risks 37:47 Should finance be open source? 43:02 Timelocks 49:28 Clawbacks are the future!

The Gwart Show is sponsored by Ellipsis Labs. Ellipsis Labs builds the most efficient on-chain markets. Their orderbook and Prop AMM products have delivered price improvement to hundreds of billions of dollars in retail volume. Now, they are bringing their expertise to build Phoenix, the best on-chain perpetuals platform.

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