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Vitalik Buterin Sees Stable DeFi as Key to Ethereum’s Future

Key Takeaways

  • ​Vitalik Buterin suggests that low-risk DeFi can provide Ethereum with stable, long-term revenue without compromising its values;
  • He points out a divide between profitable yet speculative apps and value-driven projects that often struggle financially;
  • By using dependable DeFi tools like stablecoin lending, Ethereum could mirror Google’s model of funding innovation through steady income.

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Vitalik Buterin Sees Stable DeFi as Key to Ethereum’s Future

Vitalik Buterin, co-founder of Ethereum, shared his view on how Ethereum ETH $4,189.88 can build a strong financial foundation without straying from its values.

In a blog post published on September 20, Buterin explained a challenge within the Ethereum community.

Some applications have generated revenue, such as trading platforms, meme coins, and non-fungible tokens (NFTs). On the other hand, projects that share those values have not brought in much revenue. This divide has caused uncertainty about how Ethereum should sustain itself.

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To address this, Buterin proposed that more stable DeFi services could become a consistent source of income.

He mentioned protocols like Aave AAVE $266.12 , where users can lend stablecoins like USDC USDC $1.00 or Tether USDT $1.00 and earn interest, around 5% for lower-risk coins, and sometimes over 10% for others. These types of financial tools are less volatile and can offer predictable returns.

He compared this idea to how Google earns its main revenue from search and ads, even though it also builds products like phones and browsers. While those projects matter, they do not make nearly as much money.

Ethereum could do something similar by using reliable finance tools to earn money, while supporting other useful but less profitable projects.

However, since Ethereum is decentralized, it can avoid the negative effects seen in traditional companies. For example, he criticized Google for relying on ads that encourage the collection of user data, something that does not align with open-source values.

On September 13, Buterin shared concerns about involving artificial intelligence (AI) in blockchain project governance. What did he say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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