Vitalik Buterin Reveals the Huge Potential of Low-Risk DeFi in Supporting Ethereum’s Economy

Updated
September 23, 2025
Gambar Vitalik Buterin Reveals the Huge Potential of Low-Risk DeFi in Supporting Ethereum’s Economy

Jakarta, Pintu News – Ethereum founder Vitalik Buterin has expressed his views on the important role of low-risk decentralized finance protocols in supporting the growth of the blockchain economy. This protocol, according to him, has a similar role to Google Search in supporting Google’s expansion.

Definition of Low-Risk DeFi

The low-risk DeFi protocol is designed to provide irreplaceable value to the network and its users. In contrast to speculative yield farming or meme-driven trading, this protocol is aligned with the technical nature of Ethereum and the long-term goals of its community.

These protocols offer greater stability and security compared to traditional financial products that are often prone to market risks and system failures. With a focus on sustainability and reliability, low-risk DeFi is becoming a strong backbone for the digital economy.

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New Innovations that May Emerge on Ethereum

While there are still risks such as hacking, Buterin emphasized that risks in traditional finance are now often equal to or even greater than DeFi. This opens up opportunities for new innovations that can strengthen the Ethereum economy.

One of the expected innovations is a reputation-based lending system that does not require excess collateral. In addition, prediction markets for hedging and “flatcoins” tied to inflation indices or consumer baskets are also the focus of further development.

Benefits of Low-Risk DeFi for Ethereum Adoption

Low-risk DeFi not only strengthens the Ethereum economy but also eases access to existing economic opportunities, especially in locations where traditional finance is insufficient. This permissionless access makes DeFi a practical and dignified driver of adoption.

Buterin emphasized that while Ethereum doesn’t have a magic formula for creating yields that transcend global markets, its strength lies in the ability to provide economic access. This makes low-risk DeFi an effective and beneficial enabler for the Ethereum economy.

Conclusion

By utilizing low-risk DeFi, Ethereum is not only strengthening its economic structure but also paving the way for innovations that could change the way the world interacts with finance. Vitalik Buterin hopes that with this approach, Ethereum can continue to contribute to the development of a more secure and inclusive blockchain technology.

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