Vitalik Buterin, co-founder of Ethereum, proposed that low-risk decentralized finance could become the stable economic foundation of the network, comparable to how internet search consolidated Google. According to the developer, these protocols could generate reliable revenue without compromising Ethereum's decentralized principles.
In his most recent article, the Ethereum creator highlighted that the DeFi ecosystem has evolved from its early stages, characterized by high volatility. Today, platforms that facilitate payments, savings, collateralized loans, and synthetic assets have become more secure, providing a solid foundation for the network's utility. This approach would allow it to attract more users without sacrificing Ethereum's founding values.
Buterin emphasized that economic sustainability doesn't necessarily require spectacular applications, but rather ethical and consistent solutions. He cited as an example the interest rates on stablecoins on platforms like Aave, which hover around 5%, compared to riskier options that exceed 10%. According to him, these tools can generate stable income while respecting the network's philosophy.
Additionally, the developer envisions new innovations such as reputation-based lending, prediction markets, and flatcoins, digital assets designed to preserve purchasing power. These tools could expand Ethereum's reach into everyday financial life and foster global inclusion.
Current scenario of the Ethereum DeFi ecosystem
Ethereum's DeFi ecosystem has shown signs of recovery: in August, the total value locked (TLV) surpassed USD 300 billion. Likewise, recent regulation, including the Digital Asset Market Clarity Act, has also boosted interest, with surveys indicating that more than 40% of Americans would consider using DeFi under stricter regulatory frameworks.
In just two weeks in August, Ethereum's total live value (TLV) jumped from $319 billion to $368 billion. Source: Token Terminal.
However, despite the ETH price recovery, Ethereum's on-chain revenue fell 44% in August to $14.1 million, down from $25.6 million in July. Fee reductions following the Dencun upgrade contributed to this decline, raising concerns about financial sustainability, though many analysts believe the lower costs could boost mass adoption.
Now, in contrast to centralized models like Google, whose reliance on advertising can compromise privacy, Buterin argues that Ethereum has the opportunity to generate revenue aligned with ethical principles thanks to its decentralized design:
I hope Ethereum can do much better than Google. Google is often criticized for losing its way and becoming like the antisocial, profit-maximizing corporations it sought to replace. Ethereum has much deeper technical and social decentralization, and I would argue that using low-risk defi in this case creates a lot of alignment between "doing well" and "being good," to a degree that doesn't exist for advertising.
Vitalik Buterin, co-founder of Ethereum.
Vitalik's comments outline a horizon in which Ethereum consolidates itself as a reliable financial infrastructure, centered on low-risk DeFi protocols that balance sustainable income and foundational values.
