⚠️ Vitalik Buterin stated that algorithmic stablecoins should be considered true DeFi. He emphasized that a well-designed ETH-collateralized algorithmic stablecoin can transfer USD counterparty risk to market makers, even if most liquidity is sourced from CDP holders. He also noted that RWA-backed models can be effective if they are overcollateralized and diversified. Buterin argued for prioritizing ETH-collateralized designs, followed by diversified RWA models, and suggested a gradual #shift from a pure USD unit of account to broader indices. #stablecoin

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