Financial markets are a complex set of interlinked systems. Decentralized finance (DeFI) markets are even more complex: they move faster, are global in nature, and are infinitely more composable. These characteristics, unique to DeFi markets, have always been a feature, not a bug. However, complex interlinked systems like DeFi are at greater risk of suffering from cascading events, which are events that take place through a chain reaction and are often uncontrollable and happen in quick succession. In this article, William Starr, FTC investor and Technical Lead, and Liang Wu, Web 3 Research fellow at HBS look at Lido’s stETH token, particularly the stETH depegging that happened in June 2022 as a case study to shed light on what we can learn from cascading events.