Ethereum co-founder Vitalik Buterin believes that low-risk decentralized finance (DeFi) protocols could provide Ethereum with the kind of stable, long-term revenue stream that Google Search provides for Google. In a new blog post, Buterin explained how sustainable DeFi can balance economic security with Ethereum’s cultural and ethical values.
Solving Ethereum’s Revenue Tensions
Ethereum has grown into a multi-trillion-dollar ecosystem, but Buterin noted an internal tension:
- High-revenue apps — NFTs, memecoins, and speculative trading — generate significant fees but often conflict with Ethereum’s cultural ideals.
- Value-driven apps — nonfinancial or semifinancial projects — align with Ethereum’s ethos but fail to create enough revenue to sustain the network.
This mismatch, Buterin said, has created “dissonance” within the community. He argues that low-risk DeFi could solve the issue by being both financially stable and ethically aligned.
Low-Risk DeFi as Ethereum’s Core Fee Generator
Buterin pointed to protocols like Aave, where lending stablecoins such as USDT and USDC earns 5% yields, while higher-risk stablecoins can offer returns above 10%. These predictable, lower-risk products, he argued, could become Ethereum’s backbone for revenue.
He compared this model to Google: while the company builds products like Chrome, Pixel phones, and AI models, search advertising still drives most of its profits. Similarly, Ethereum’s nonfinancial applications could flourish, but DeFi might be the economic anchor.
Buterin emphasized that Ethereum has the potential to “do much better” than Google, because it avoids centralized incentive traps. Google’s reliance on advertising revenue led to user data hoarding and privacy trade-offs, which clashed with its original values.
By contrast, Ethereum’s decentralized structure ensures that low-risk DeFi aligns financial success with ethical principles. This creates harmony between “doing well” and “being good.”
Rising DeFi Momentum
The timing of Buterin’s comments is notable. Ethereum’s total value locked (TVL) recently crossed $100 billion, a level not seen since early 2022. The DeFi sector is also benefiting from increased regulatory clarity, including the Digital Asset Market Clarity Act, which could accelerate mainstream adoption.
A survey from the DeFi Education Fund found that over 40% of Americans are open to using DeFi if stronger legal protections are introduced — signaling a large potential user base.
Vitalik’s Next Vision: Basket Currencies and Flatcoins
Beyond low-risk lending, Buterin also advocated for new cryptoassets to support Ethereum’s economy:
- Basket currencies: Tokens tracking multiple fiat currencies.
- Flatcoins: Assets pegged to consumer price indices (CPI), offering inflation-resistant stability.
These innovations could provide a more diversified foundation for Ethereum’s financial layer while extending access to stable assets for people in low-income and high-inflation economies.
Vitalik Buterin’s vision positions low-risk DeFi as Ethereum’s equivalent of Google Search — the reliable revenue engine that underpins innovation. If successful, Ethereum could achieve sustainable growth, preserve its values, and even outperform Web2 giants in aligning profits with ethical outcomes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.