A major DeFi protocol launched depeg swap mechanisms handling $74.1B in LST/LRT exposure, yet operated without adequate liquid hedging infrastructure. A $12M exploit last week exposed these structural vulnerabilities. What's telling: the protocol accumulated $12M in TVL over 10 months with zero token incentives—indicating genuine hedgers showed up, not just yield tourists chasing rewards. That's genuine market demand. Meanwhile, institutional players like BlackRock's BUIDL fund and Jane Street's 200k ETH position signal serious interest in staking infrastructure. The gap between $74.1B in notional exposure and such thin hedging coverage raises questions: do we have enough market depth for institutions to execute meaningful sized positions without moving prices dramatically?