Vitalik Buterin's warnings about the hidden danger in leveraged ETH treasuries

If a crisis prolongs over the next three years in the crypto ecosystem, it is likely that its causes are not rooted in the Ethereum treasury model itself, but rather in the excessive leverage that permeates these products. This is the central concern raised by Vitalik Buterin, co-founder of Ethereum, in his recent reflections on the management of ETH-backed funds.

The critical point: where risks materialize

Buterin pointed out that the real dangers of ETH treasuries only become visible when leverage levels exceed safe operational margins. A depreciation of ETH in the range of 30% to 90% would be enough to trigger a domino effect of automatic liquidations if control mechanisms are not properly structured. The Ethereum co-founder emphasized that this scenario is not hypothetical but a concrete possibility that demands immediate attention.

Safety as a priority: Buterin’s proposal

To avoid systemic crises, Vitalik Buterin advocated for the adoption of well-defined guidelines and the engagement of responsible agents in managing these treasuries. This approach differs from the historical failures previously observed in the crypto universe, where the lack of internal regulation contributed to collapses. He suggests that implementing clear rules not only protects individual investors but also strengthens the entire Ethereum ecosystem.

The message is unequivocal: controlling leverage is not just a matter of financial prudence but a structural necessity to ensure the stability of ETH treasuries in the long term.