How Does a Time-Lock Affect the Responsiveness of a DeFi Protocol?

A time-lock negatively affects the responsiveness of a DeFi protocol by imposing a mandatory delay on all critical administrative actions. In a rapidly evolving or crisis-driven market, the inability to immediately change a risk parameter, fix a critical bug, or pause a contract can lead to significant financial loss.

This reduced responsiveness is the necessary cost of decentralized security, forcing the protocol to prioritize safety and community consensus over speed of action.