Vitalik Buterin: Why Algorithmic Stablecoins Are “True DeFi” and USDC Yield Isn’t

TLDR: Vitalik excludes USDC yield products from DeFi category due to centralized counterparty risk exposure.  ETH-backed algorithmic stablecoins enable market-based counterparty risk transfer to willing participants.  RWA-backed stablecoins qualify if overcollateralized beyond any single asset’s maximum share contribution.  Future vision includes moving from dollar pegs to diversified index-based units of account systems.   Ethereum co-founder [...]

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