Vitalik discusses decentralized stablecoins: three core challenges that need to be overcome

【Crypto Rhythm】Vitalik recently shared his views on stablecoins in the crypto industry, pointing out that there are still many pitfalls to avoid with current decentralized stablecoins.

First is the issue of tracking indices. Most stablecoins are pegged to the US dollar, but this carries an inherent risk—if the goal is truly to achieve resistance to national risks, we cannot rely on the dollar forever. The ideal approach is to find a more representative asset basket or index to track, which would enable true independence.

Second, the design of oracles is very challenging. Decentralized stablecoins require oracles that cannot be manipulated by large capital to maintain price stability. In reality, if oracles are easily bought by big players, protocols must defend themselves by increasing the cost of value extraction, which raises costs over time and may ultimately become unsustainable.

Another often overlooked issue is the competition for staking yields. If stablecoins cannot offer competitive returns, it will be difficult to attract funds from other staking products. Currently, the yields of stablecoins are usually a few percentage points lower than mainstream staking products, which poses a challenge for long-term attractiveness.

These three dilemmas may seem independent, but they are actually interconnected. Solving these issues requires finding new balances in technology, economics, and incentive mechanisms.