Vitalik Outlines Three Key Challenges for Decentralized Stablecoins

Vitalik Buterin said on Jan. 11 that the crypto industry lacks robust decentralized stablecoins and outlined three unresolved issues, BlockBeats reports. He argued stablecoins should track an index beyond the U.S. dollar to reduce dollar dependence, and require oracle mechanisms resistant to control by large capital—since buyable oracles force protocols to extract high value so attack costs exceed their market cap. He added decentralized stablecoins must address yield competitiveness, as returns several percentage points below staking yields will struggle to attract capital long-term.