TechFlow News, February 9: Vitalik Buterin, Ethereum’s founder, recently published a post on social media delving into the core value of DeFi and the development trajectory of algorithmic stablecoins. He argued that true DeFi should provide financial services to users while enabling self-custody of assets—not merely offering “USDC yield” models.
Regarding algorithmic stablecoins, Vitalik proposed two developmental paths: first, creating ETH-backed algorithmic stablecoins that distribute risk through market mechanisms; second, even when backed by real-world assets (RWAs), such stablecoins should maintain over-collateralization and asset diversification to mitigate risks associated with single-asset exposure.
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