Many people, when they see DeFi projects discussing risks, their first reaction is to suppress, restrict, or avoid them. But this way of thinking is actually problematic.

As long as the system is operational, risks objectively exist. What truly elevates a project's level is not who shouts the loudest "zero risk," but rather—how sensitive the system's response to risk changes is. Some emerging DeFi protocols are designed not to eliminate risk entirely but to prevent the entire system from undergoing drastic deformation due to risk fluctuations.

**Why Overreacting Is More Deadly Than the Risk Itself**

Think about it—many protocols fail not because of the rise in risk itself, but because of a series of chain reactions: parameters tighten instantly → mass liquidations trigger simultaneously → liquidity suddenly evaporates → market panic is amplified infinitely → originally limited risk evolves into a systemic disaster. The risk was always there, but the system's overreaction inflates it into a tornado. Those well-designed protocols actually do something counterintuitive—they reduce the system's sensitivity to short-term risk changes. It’s not about ignoring risk, but about not being led by it.

**Replacing Parameter Extremes with Structural Buffers**

Many projects create a sense of security through increasingly extreme parameter settings: lower collateralization ratios, higher liquidation penalties, stricter operational restrictions. In the short term, this indeed enhances safety; but in the long run, it turns the system into a tightly wound string—fragile and rigid, easily snapping at certain points.

In contrast, some protocols adopt a different approach: using structural buffers instead of parameter limits. By allowing different modules to bear different types of stress, risks do not hit a single wall simultaneously, and the system naturally becomes less "nervous." This design actually makes the entire protocol more resilient.

**The Power of Modular Stress Distribution**

When you enable multiple independent modules to absorb specific types of risk, the entire system gains a kind of "buffer margin." A sudden increase in pressure in one module won't immediately trigger a cascade across the network. Even in extreme market conditions, the protocol can maintain relatively stable operation. For users, this design philosophy means more predictability and less extreme liquidation risk.