Haciyev Reşit 
Ethereum co-founder Vitalik Buterin shared a critical message about the cryptocurrency market, highlighting three major issues that still need to be addressed. According to Buterin, the sustainability of the sector is at risk unless decentralized stablecoins and reliable protocols are developed. He emphasized that dollar-based pricing, oracle security, and yield competition are key challenges that need solutions.
Dollar Dependence and Reference Indexes of Stablecoins
Buterin pointed out that stablecoins shouldn’t solely track the dollar price. He argued that reducing reliance on dollar-centric systems is crucial for global economic resilience. This dependence can threaten stablecoin stability during crises and reduce user trust. He suggested developing alternative reference indexes based on broader economic indicators to create a more diverse and flexible DeFi ecosystem.
Buterin highlighted that current oracle systems can be manipulated with large capital, forcing protocols to raise attack costs above their total market value to remain secure. He stressed that truly decentralized, tamper-proof, and reliable oracles are critical for long-term security and for maintaining user trust in stablecoins and other DeFi protocols.
Yield Competition and Staking Incentives
The third issue Buterin mentioned is yield competitiveness. Many stablecoins fail to offer competitive staking rewards, which can drive users to alternative platforms with similar risk profiles but higher returns. For decentralized stablecoins to gain widespread adoption, they must provide sustainable, competitive yields rather than just short-term incentives.
In Buterin’s Words:
“To develop sustainable and decentralized stablecoins, three key problems must be solved: dollar dependence, oracle security, and yield competition. These are critical for long-term resilience and reliability.”
Analysis
Vitalik Buterin’s points highlight the key obstacles for decentralized stablecoins and secure protocols. Addressing dollar reliance, developing decentralized oracles, and offering competitive staking yields are essential steps for creating a safer, more sustainable, and competitive crypto market. These solutions will play a fundamental role in the growth and resilience of the cryptocurrency ecosystem in the coming years.
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