Vitalik Buterin: Most DeFi is 'fake'

Ethereum founder Vitalik Buterin has criticized the current structure of DeFi, arguing that most of it is fake. In a post on X, he asserted that the true purpose of DeFi is not yield optimization but the decentralization of counterparty risk. Buterin explained that lending and deposit strategies based on USDC fail to meet the core DeFi principles of self-custody and decentralization because they rely on a centralized asset. In contrast, he suggested that overcollateralized algorithmic stablecoins are closer to genuine DeFi as they can distribute risk through market makers.

Source
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.
Like
Add to Favorites
Comments