The co -founder of Ethereum, Vitalik Buterin, said that the income of low -risk decentralized funding protocols could give the network economic stability – just as Google research takes care of Google – while allowing non -financial applications to maintain Ethereum cultural values.
DEFI at low risk could tackle “important tensions” in the Ethereum community on the question of whether the applications that report enough income to keep the ecosystem economically align with the cultural and ethical values that brought people to Ethereum in the first place, said Buterin in a blog article on Saturday.
The first was a combination of non-fansible tokens, even speculative trading, while non-financial and semi-financial applications that reflect the cultural values of Ethereum have struggled to obtain a general adoption or have not generated enough costs, he said.
“This ignorance has created a lot of dissonance in the community,” said Buterin, before asserting his arguments for a low risk challenge of being the main generator of Ethereum. An example underlined Buterin was the deposit rates for stabb loans on the DEFI protocol, which hover around 5% for blue fleas such as attachment (USDT) and USDC (USDC) and more than 10% for higher risks stables.
Likewise, Buerin noted that Google was doing many “interesting and precious things” – such as his family of chrome browsers, his pixel phones, his Gémini Ai Open Source models, and even more – but the income they make of these products are a fraction in relation to what she does by research and advertisements.
It comes then that the total value locked on Ethereum DEFI recently exceeded $ 100 billion for the first time since the beginning of 2022. DEFI TVL has gone massively through the ecosystem during the lower 2022-2023 market, and TVL figures have largely followed the performance of the upper layer 1.
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However, Defi recently resumed in the midst of an increase in regulatory impulse, in particular the law on the clarity of the digital asset market, which should push even more DEFI adoption. A recent survey of the DEFI education fund has revealed that more than 40% of Americans are open to DEFI if stronger laws are set up.
Ethereum has the potential to “do much better” than Google
Ethereum has the potential to “do much better” than Google because of its decentralization. Unlike Google, Ethereum’s decentralized structure is better at low risk defects to align financial success with ethical results, creating harmony between “getting well” and “being good”.
“The income generator should not be the most revolutionary or exciting application of Ethereum. But it must be something that is not at least not actively contrary to ethics or not embarrassing. ”
Buterin criticized the incentive model of Google, noting that advertising revenues push the company to thesauty user data, in conflict with its ethics of open-source and positive sum.
Vitalik defends basket currencies, flatcoins
While the low -risk defect often consists in allowing easier access to the US dollar – in particular those of low -income and high inflation countries – Buterin would like to see other innovations that provide economic support in Ethereum.
Buterin presented the idea of building cryptocurrency who follow a basket of currencies and trays that are based directly on consumer price indices.
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