Vitalik Buterin stated that algorithmic stablecoins are "the real DeFi." According to him, a good model with $ETH collateral could distribute the risk on the dollar side to investors and market makers in the market, rather than to banks. RWA-backed stablecoins are also possible, but this requires significant collateral and strong diversification. Vitalik said that the priority should be on #ETH-collateralized systems, then diversified RWA models should be adopted, and over time, different indices should be used instead of relying solely on the dollar.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
#CelebratingNewYearOnGateSquare
Vitalik Buterin stated that algorithmic stablecoins are "the real DeFi." According to him, a good model with $ETH collateral could distribute the risk on the dollar side to investors and market makers in the market, rather than to banks.
RWA-backed stablecoins are also possible, but this requires significant collateral and strong diversification.
Vitalik said that the priority should be on #ETH-collateralized systems, then diversified RWA models should be adopted, and over time, different indices should be used instead of relying solely on the dollar.
$ETH