Vitalik Buterin Champions Low-Risk DeFi to Secure Ethereum’s Future

- Ethereum co-founder argues for sustainable decentralized finance as key to long-term network growth. - Buterin highlights payments, savings, and lending as reliable revenue drivers for Ethereum. Ethereum co-founder Vitalik Buterin called for Ethereum to prioritize low-risk decentralized finance (DeFi) protocols, arguing they are a critical foundation for the network’s economic sustainability. On September 21, 2025, The Block reported Buterin’s comments, where he emphasized that applications like payments, savings, and fully collateralized lending can generate consistent revenue. This income can support the network’s more daring, non-financial innovations. Buterin framed a clear strategic pivot. He noted that while many were skeptical of DeFi early on, the sector has since evolved and reduced its risks. He compared low-risk DeFi protocols to Google’s advertising business, which underpins its broader initiatives. This model, he suggested, could offer Ethereum a steady and ethical funding source. Buterin also pointed out that in underserved global markets, certain DeFi solutions now offer safer alternatives than traditional financial systems. In a noteworthy comparison, Buterin criticized other blockchain ecosystems that rely primarily on memecoins to drive fee revenue. He warned that this reliance creates ethical challenges and risks reputational damage, making it harder to position these networks as transformative. In contrast, Buterin asserted that Ethereum’s mission centers on sustainable growth through credible DeFi use cases. This focus distinguishes Ethereum from ecosystems with minimal or politically contentious utility. Looking ahead, Buterin identified promising avenues for low-risk DeFi's evolution. These include undercollateralized lending based on reputation systems and integrating prediction markets into the DeFi space. He also highlighted developing alternatives to USD-pegged stablecoins. One example is flatcoins, which aim to maintain purchasing power without relying on traditional currency. These proposals align with Ethereum’s evolving roadmap and complement recent internal changes at the Ethereum Foundation, such as an updated grants program and a renewed emphasis on security and privacy. According to CoinMarketCap, Ethereum (ETH) traded at $4,473.19 as of September 21, at 21:13 UTC. Its 24-hour trading volume decreased by 0.348%. With a fully diluted market cap of $539.93 billion, Ethereum continues to reinforce its dominance and relevance within the broader cryptocurrency ecosystem.