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Vitalik: Low-risk DeFi Could Become Ethereum's Core Revenue Engine, Analogous to Google's Search Business Model
Summary: In a recent social media post, Vitalik discussed the long-standing dilemma in the Ethereum community between application revenue and ecosystem goals. He highlighted that high-yield applications like NFTs and Memecoins often diverge from fundamental value goals, while non-financial applications align with the vision but struggle to support a $500 billion economy. Vitalik suggested that low-risk ...
In a recent social media post, Vitalik discussed the long-standing dilemma in the Ethereum community between application revenue and ecosystem goals. He highlighted that high-yield applications like NFTs and Memecoins often diverge from fundamental value goals, while non-financial applications align with the vision but struggle to support a $500 billion economy. Vitalik suggested that low-risk DeFi (payments, savings, synthetic assets, and overcollateralized lending) could serve as Ethereum's core revenue source, similar to Google's search business. These applications not only sustain the economic ecosystem through high transaction fees and ETH collateral demand but also uphold the values of global inclusive finance, avoiding ethical issues of traditional advertising models. Vitalik noted that the tightening regulatory environment and improved protocol security create favorable conditions for the development of low-risk DeFi. This sector may evolve towards undercollateralized lending, prediction market hedging, and diversified stable value assets (such as a basket of currencies or inflation-linked tokens), generating synergies with experimental applications on Ethereum.
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Link: Vitalik: Low-risk DeFi Could Become Ethereum's Core Revenue Engine, Analogous to Google's Search Business Model [Copy]
