Vitalik Buterin Claims 'Algorithmic Stablecoins Are the True DeFi'

On the 9th, Ethereum co-founder Vitalik Buterin shared his views on the fundamental definition of decentralized finance (DeFi) in a post on X (formerly Twitter). His comments were in response to an industry stakeholder's post that suggested 'DeFi exists solely to maintain self-custody while holding long positions in cryptocurrencies.' Buterin argued that algorithmic stablecoins backed by Ethereum are the real DeFi and presented two criteria. Firstly, in the case of Ethereum-backed algorithmic stablecoins, even if 99% of the liquidity...