Core Insights - Vitalik Buterin, co-founder of Ethereum, has raised concerns about the limitations of decentralized stablecoins and the overreliance on USD-pegged assets [1][5] - He identified three main issues: the need for a better index than the USD, the creation of a decentralized Oracle that cannot be manipulated, and the competitive nature of staking yields [1] - The current market dynamics show that stablecoins are integral to Ethereum's operations, functioning as its cash layer rather than a secondary feature [2][6] Group 1: Concerns About Decentralized Stablecoins - Buterin emphasizes that many stablecoin designs appear stable in calm markets but can fail under stress, citing the collapse of Terraform Labs' UST stablecoin as a significant example [4] - He argues for the necessity of independence from the USD price ticker in the long term, highlighting potential risks such as hyperinflation in the US [5] Group 2: Market Context and Implications - The market capitalization of prominent stablecoins like Tether's USDT and Circle's USDC is approximately $260 billion, with over $70 billion in daily trading volume [3] - Ethereum processed trillions in stablecoin transfers last year, indicating the critical role these tokens play in trading, lending, and payments within the network [6]

⚡️ UPDATE: The decentralized stablecoin USDD surpasses $816M in supply and $860M in TVL. https://t.co/x5yk2bVUfq ...