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Vitalik Buterin Identifies Three Design Roadblocks to Truly Decentralized Stablecoins

His post shifts the debate toward concrete constraints on indexes, oracle integrity, and staking yields.

Overview

  • He urges moving beyond dollar pegs toward broader price indexes or purchasing‑power benchmarks to reduce long‑horizon fiat risk.
  • He warns oracles must be resistant to capture by large capital pools, linking the issue to extractive, financialized governance.
  • He highlights competition from staking yields and outlines three options: near‑zero yields, lower‑risk staking classes, or making slashable staking usable as collateral.
  • He flags slashing and inactivity‑leak scenarios, including 51% censorship risks, as critical stress cases for stablecoin solvency.
  • He argues stablecoins need dynamic collateral rebalancing during sharp market moves, with current discussions focused on trade‑offs rather than immediate fixes.