Vitalik Buterin Identifies Three Structural Weaknesses in Decentralized Stablecoins

Vitalik Buterin outlines three structural issues he believes still undermine decentralized stablecoins: dependence on USD-based price pegs, vulnerability of oracle systems, and conflicts created by staking yields when used as collateral. He argues that long-term resilience will require new reference indexes, more robust oracle designs, and mechanisms that balance staking returns with stablecoin usability and risk management.