Vitalik Wants Better Decentralized Stablecoins on Ethereum

Ethereum co-inventor Vitalik Buterin argued that for Ethereum to truly grant users independence from traditional finance, the ecosystem requires better decentralized stablecoins. He identified three primary challenges: the over-reliance on the US dollar peg, which he believes is risky over a 20-year horizon; the need for robust oracles capable of resisting manipulation without increasing user costs; and the difficulty in maintaining high staking returns without destabilizing collateral or discouraging usage. Buterin suggested lowering staking yields to around 0.2% and introducing new staking methods that avoid typical slashing risks. He emphasized that stablecoin security must account for both protocol errors and network attacks, noting that Ether alone cannot guarantee stability. Currently, centralized stablecoins like USDT and USDC dominate the market, while decentralized options like Dai (DAI) and Ethena's USDe (USDe) have failed to significantly challenge this dominance following the collapse of TerraClassicUSD (USTC).

(Source：Cointelegraph)