No, the lending rate includes the risk of exploitation. I’ll reiterate that a short position (attacker selling borrowed tokens) allows an attacker to profit from a crash.
Some ideas for addressing soundness risk directly:
- Postpone the escape hatch until after Prediction-marketed non-governance prices the risk of exploit below a threshold
- Create an on-chain soundness bounty that disables the escape hatch for a while
- Pay third-party contractors for security audits