6.2. Operational Risk

Although DeFi activity is highly automated, human operators still play a crucial role. The more decentralized a service, the less risk there is associated with any single point of failure. Auxiliary services may be centralized even when the DeFi service is highly decentralized. At the same time, greater decentralization can make it harder to respond effectively when something goes wrong. The fewer people who have the unique power to break a service, the fewer who have the power to fix it. This risk is managed by automating as many roles as possible, and empowering AI to make calculations and decisions.