Vitalik: Ethereum needs a more mature decentralized stablecoin system to build a value index that is superior to the dollar-pegged price.

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According to Foresight News , Ethereum co-founder Vitalik Buterin stated that the Ethereum ecosystem needs a more mature decentralized stablecoin system, and pointed out three core issues: first, a value index pegged to the US dollar should be built; second, a decentralized oracle design that cannot be captured by large funds is needed; and third, the competitive relationship between staking rewards and stablecoins and CDP mechanisms needs to be resolved.

Vitalik believes that pegging to the US dollar is acceptable in the short term, but in the long term, reliance on a single fiat currency system should be reduced to enhance system resilience. Lowering the collateral yield to around 0.2% is essentially only suitable for amateur investors.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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