Vitalik: DeFi Should Go Beyond USDC Yields, Algorithmic Stablecoins Need Diversified Development

Ethereum founder Vitalik Buterin recently posted on social media, discussing the core value of DeFi and the development direction of algorithmic stablecoins. He believes that DeFi should provide financial services while maintaining asset self-custody, rather than relying solely on the USDC yield model. Vitalik proposed two development paths for algorithmic stablecoins: algorithmic stablecoins backed by ETH can disperse risk through market mechanisms; stablecoins based on real-world assets need to achieve over-collateralization and asset diversification to reduce the risk of single assets.