Vitalik Buterin advocates ETH-backed algorithmic stablecoins as genuine DeFi

Vitalik Buterin emphasized that well-designed algorithmic stablecoins, particularly those collateralized by Ethereum (ETH), represent true decentralized finance (DeFi), capable of mitigating USD counterparty risk by transferring it to market makers. This aligns with ongoing discussions within the Ethereum ecosystem that encourage moving away from USD-centric units of account towards broader indices for stable assets, reflecting a growing trend among experts advocating for overcollateralized and diversified backing to improve stability and resilience against individual asset failures.

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Crypto Desk February 10, 2026

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