NEAR Protocol Co-Founder Reflects on DeFi Security and Governance Issues
Illia Polosukhin, co-founder of NEAR Protocol, published a reflection on the recent surge in DeFi attacks, stating that the industry needs to evolve fundamentally.
He believes that currently viewing self-custody and security as a binary opposition rather than a spectrum is detrimental to users; many seemingly secure issues are essentially governance problems; DeFi should learn extensively from the security and user experience mechanisms of TradFi.
In market mechanisms, DeFi users and liquidity are rapidly shifting towards projects that prioritize security and mature governance; event-driven funds are flowing out of high-risk protocols; platforms with advanced intent architecture and hybrid custody solutions benefit, while purely self-custodied high-yield protocols are under pressure.
Source: Public Information
ABAB AI Insight
Illia Polosukhin, as a co-founder of NEAR Protocol, has long advocated for on-chain intent architecture. NEAR has previously laid out plans in account abstraction and chain abstraction. This publication emphasizes addressing security and UX pain points through the @near_intents project, attempting to shift DeFi from the extreme of "trust minimization" to a practical balance of "security spectrum."
In terms of capital pathways, the NEAR team is concentrating resources on intent layer infrastructure, shifting liquidity from vulnerable single protocols to more robust cross-chain intent execution systems through hybrid security models and governance optimization, while absorbing risk control and user protection experiences from TradFi.
Similar to the industry's reflection on governance and security mechanisms after multiple rounds of DeFi hacking events from 2022 to 2025, and the mature practices of TradFi in custody, insurance, and risk control; DeFi is currently at a critical stage of transitioning from barbaric growth to security compliance and user-friendliness.
Essentially, it belongs to capital concentration, by viewing security as a spectrum rather than binary, concentrating DeFi funds from purely self-custodied high-risk protocols to hybrid governance and professional security models. The mechanism is that governance flaws are often the root of attacks, and only by integrating TradFi's risk control experiences can systemic risks be significantly reduced and mainstream capital attracted for long-term engagement.
ABAB News · Cognitive Law
Security is not black and white, but a continuum that requires careful design. Most DeFi "hacker" incidents are essentially the cost of governance failure. Truly mature DeFi never rejects TradFi, but intelligently absorbs its century-old risk control wisdom.