X @Wu Blockchain

Vitalik Buterin said algorithmic stablecoins should be viewed as true DeFi. A well-designed ETH-collateralized algorithmic stablecoin can shift USD counterparty risk to market makers, even if 99% of its liquidity comes from CDP holders. He added that RWA-backed models can also work if they are overcollateralized and highly diversified. Vitalik argued that development should prioritize ETH-collateralized designs, followed by diversified RWA models, and gradually move beyond a pure USD unit of account toward ...