Even with the stablecoin market hitting Ethereum - Vitalik Buterin argues we aren't there yet. These 3 Big Problems Are:
- Beyond the USD Peg: Relying on the U.S. Dollar is a short-term fix. Vitalik warns of dollar debasement over 20 years and suggests we need a better, independent price index (💯 agree) _
Oracle Security: We need decentralized oracles that cannot be captured by players with deep pockets. If it's cheaper to corrupt an oracle than the protocol is worth - the system fails.
The Staking Rivalry: Stablecoins are struggling to compete with staking yields. Why hold a non-yielding stablecoin when you could just stake your ETH$ETH?
Centralized giants like Tether and Circle still dominate over 90% of the market. While projects like Ethena (USDe) and Sky (DAI) are fighting for share, they remain small compared to their centralized counterparts.
So, axcording to Vitalik, the industry needs to focus on actual decentralization rather than just chasing VC-favored custodial trends.
💬 How do you think, can a stablecoin succeed without a USD peg? Or are we stuck with centralized issuers forever?
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