# kaal:claim:3782217-007

**Claim.** Legislation is the wrong remedy for oracle exploitation, because the existence of an arbitrage opportunity means systems will evolve around whatever rules exist in order to exploit the advantage; the proper response is to engineer a better system.

**Type.** failure  **Support.** argued

**Holds when.**

- insider information and arbitrage opportunities

**Source quote.**

> But the very existence of this opportunity for arbitrage means systems will evolve around whatever rules exist to exploit the advantage. Instead of legislating, the proper response is to engineer a better system.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of History In Decentralization* (2021), Oracles, page 3

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021). SSRN: https://ssrn.com/abstract=3782217

**Verify.** sha256 of source PDF `358779557d8e7dcd101720ca0fad90b9146d24f1c7c03909eb431fcf1fb7e103` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20History%20In%20Decentralization.pdf

**Failure mode.** regulatory-evasion  (family: regulatory-arbitrage)

**Topics.** regulatory-failure

**Keywords.** regulation, arbitrage, rule-evasion, engineering-over-legislation

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.