IntroductionPrior to the events in the past few months, the words ‘insolvency’ and ‘bankruptcy’ would have sounded totally alien in the universe of DeFi protocols and DAOs. The prevalent usage of overcollateralization - which is the practice of holding (significantly) more collateral from a debtor than the value of a loan is worth - was supposed to make it an impossibility for DeFi protocols (and their users) to ever owe more than they have. If a debt position ever threatens to approach negat...