Vitalik: Algorithmic Stablecoins Are the True DeFi

Odaily News Vitalik Buterin posted on the X platform, stating that algorithmic stablecoins belong to the true DeFi. He believes that if there is a high-quality algorithmic stablecoin with ETH as the underlying asset, even if the vast majority of liquidity is supported by CDP holders holding negative algorithmic dollars, the ability to transfer counterparty risk to market makers remains an important feature. Even if algorithmic stablecoins are backed by RWA, if sufficient collateral can be ensured through over-collateralization and diversified allocation in the event of a single RWA failure, it is also an effective improvement in risk characteristics for holders. He pointed out that the industry should move in these directions, gradually moving away from using the US dollar as the unit of account and shifting towards more general diversified indices. Furthermore, the current operation of depositing USDC into Aave does not fall into the above categories.