Core Perspective - The debate over the true purpose of Decentralized Finance (DeFi) has been reignited by Ethereum co-founder Vitalik Buterin and crypto analyst c-node, who challenge the industry to rethink its priorities [1][2] Group 1: Critique of Current DeFi Practices - Much of the current DeFi hype is considered superficial, primarily serving speculative interests rather than advancing genuine DeFi infrastructure [2] - Common yield-generating strategies, such as depositing USDC into lending protocols, are dismissed as "cargo cults," which mimic DeFi's success without embodying its original ethos [3] - Non-Ethereum chains may struggle to replicate Ethereum's DeFi boom due to a lack of ideological commitment to self-custody among newer ecosystems, which are often dominated by venture capital funds [3] Group 2: Definition and Vision of "Real" DeFi - Buterin argues that algorithmic stablecoins, especially those that are overcollateralized or structured to decentralize counterparty risk, qualify as genuinely decentralized [4] - The ability to transfer counterparty risk to a market maker is highlighted as a significant feature of DeFi, even if most liquidity is backed by collateralized debt positions (CDPs) [5] - Buterin criticizes USDC-based strategies, asserting that depositing centralized stablecoins into lending protocols does not meet the criteria for DeFi [6] Group 3: Ideological Divide in DeFi - There exists a deeper ideological divide within the crypto community regarding the purpose of DeFi, with some viewing it as a tool for speculative capital efficiency while others see it as a foundational financial system capable of reshaping the global monetary sector [6][7] - The long-term vision articulated by Buterin involves moving away from dollar-denominated systems towards diversified units of account backed by decentralized collateral structures [6]