RT BSCN (@BSCNews)🚨 VITALIK DEFENDS ALGORITHMIC STABLECOINS!While slamming USDC yield, @VitalikButerin backs:- $ETH-backed algorithmic stablecoins- Overcollateralized systems- Risk pushed to markets, not issuersThis is the DeFi model he supports 👇 ...

RT BSCN (@BSCNews)🚨 VITALIK DEFENDS ALGORITHMIC STABLECOINS!While slamming USDC yield, @VitalikButerin backs:- $ETH-backed algorithmic stablecoins- Overcollateralized systems- Risk pushed to markets, not issuersThis is the DeFi model he supports 👇 ...

🚨 VITALIK DEFENDS ALGORITHMIC STABLECOINS!While slamming USDC yield, @VitalikButerin backs:- $ETH-backed algorithmic stablecoins- Overcollateralized systems- Risk pushed to markets, not issuersThis is the DeFi model he supports 👇BSCN (@BSCNews):https://t.co/dEOv1We9pj ...

🚨 JUST IN: VITALIK DECLARES ALGORITHMIC STABLECOINS “REAL DEFI”@VitalikButerin said algorithmic stablecoins should be treated as true DeFi.Buterin said DeFi should move beyond a single USD unit of account.He argued $ETH-collateralized designs reduce USD counterparty risk.He pointed to broader indices as a long-term direction. ...

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 ...

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]

🚨JUST IN: BRAZIL MOVES TO MAKE ALGORITHMIC STABLECOINS ILLEGALBrazil's congressional committee has approved Bill 4.308/2024 which would see algorithmic stablecoins entirely banned from the country.It would see assets like @ethena's $USDe and @fraxfinance's $FRAX prohibited.Major stablecoins like @Tether's $USDT and @Circle's $USDC would likely be fine, given their assets are fully-backed with reserves. ...

Brazil moves closer to banning algorithmic stablecoins as a congressional committee approved Bill 4,308/2024, requiring all stablecoins to be fully backed by segregated reserves and prohibiting unbacked models such as Ethena’s USDe and Frax. The bill introduces criminal penalties of up to eight years in prison for issuing unbacked stablecoins and places compliance and risk-management obligations on exchanges offering foreign stablecoins like USDT and USDC. https://t.co/lsXsPuXlop ...