#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