In any credit network, debt chains form. Alice borrows from Bob. Bob borrowed from Charlie. Charlie borrowed from Diana. The chain extends, creating a web of obligations that can span many intermediaries. These chains are not inherently problematic, but they create complexity. Each link in the chain represents a potential point of failure. Each intermediary bears risk. The longer the chain, the more fragile the structure. The warrant mechanism addresses this by automatically shortening debt c...

In any credit network, debt chains form. Alice borrows from Bob. Bob borrowed from Charlie. Charlie borrowed from Diana. The chain extends, creating a web of obligations that can span many intermediaries. These chains are not inherently problematic, but they create complexity. Each link in the chain represents a potential point of failure. Each intermediary bears risk. The longer the chain, the more fragile the structure. The warrant mechanism addresses this by automatically shortening debt c...