Monad co-founder Keone Hon has proposed implementing rate limits on collateral supply in liquidity pool lending protocols to prevent significant losses, such as the recent $200 million rsETH incident. Hon suggests that instead of allowing large single deposits, the supply should grow incrementally, for example, by $10 million every 10 minutes, to mitigate risks associated with 'infinite minting vulnerabilities.' Hon emphasizes the importance of introducing a 'smart cap' system, where the initial cap is slightly above the current supply and gradually adjusts to the true cap over time. This approach could have significantly reduced the losses faced by rsETH depositors. He also highlights the need for asset issuers to support these mechanisms to minimize external exit pathways without affecting normal user access, viewing high supply caps as potential risks rather than strengths.