Vitalik: Low-Risk DeFi Could Be Ethereum’s Google Search
Buterin says low-risk DeFi could fund Ethereum’s ecosystem like Google Search powers Alphabet.
Crypto Laddin
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Ethereum co-founder Vitalik Buterin believes the network’s long-term sustainability may hinge on an unlikely hero: low-risk DeFi protocols. In a new blog post, he likened them to Google Search — a reliable revenue generator that funds broader ventures while keeping the core business stable.
Buterin argued that such a model would allow Ethereum to maintain economic strength while preserving its cultural values. “The revenue generator doesn’t have to be the most revolutionary or exciting application of Ethereum,” he wrote. “But it does need to be something that is not actively unethical or embarrassing.”
As an example, he pointed to Aave’s stablecoin lending rates: blue-chip assets like USDT and USDC yield around 5%, while higher-risk assets push above 10%. This, Buterin suggested, could provide a reliable base layer of income without compromising Ethereum’s principles.
The Ethereum community has long been split between speculative products like NFTs and memecoins, which generate high fees but little ideological satisfaction, and values-driven apps that often struggle to sustain revenue. Low-risk DeFi, he argues, can bridge that gap.
Momentum is already building. Ethereum’s DeFi TVL recently surpassed $100 billion for the first time since early 2022. A survey from the DeFi Education Fund also revealed that over 40% of Americans would consider using DeFi if stronger regulations were in place.
Beyond lending, Buterin endorsed basket currencies and flatcoins — assets pegged to consumer price indices or multiple fiat currencies — as ways to reduce reliance on the US dollar and stabilize Ethereum’s economic layer.
Still, challenges remain. Ethereum’s on-chain revenue dropped 44% in August, falling to $14.1M from $25.6M in July, even as ETH hit an all-time high of $4,957. The Dencun upgrade slashed fees on layer-2s but cut into base-layer revenues, raising questions about Ethereum’s economic sustainability.
Despite this, Buterin remains confident: “Ethereum has the potential to align financial performance with ethical outcomes — to do much better than Google.”
