What Is the Common Use Case for a Multisig in a DeFi Protocol?

The most common use case for a multisig in a DeFi protocol is to secure the protocol's treasury, control the upgradeability of the core contracts, and act as the owner for critical administrative functions (like pausing the contract in an emergency). By requiring consensus from multiple trusted individuals or core developers, the multisig protects the protocol's funds and critical infrastructure from a single point of failure, a compromised private key, or a rogue developer.