Ethereum co-founder Vitalik Buterin urged the Ethereum community to prioritize low-risk decentralized finance (DeFi) protocols, emphasizing their potential to sustainably support the network’s broader ecosystem.
Buterin argued that these protocols—encompassing payments, savings, fully collateralized lending, and other well-established applications—could serve as a reliable economic foundation for Ethereum, much like Google’s advertising revenue supports its less profitable but socially valuable projects.
Drawing a parallel to Google, which derived over 75% of its 2024 revenue from ads, Buterin suggested that low-risk DeFi could generate the financial stability needed to sustain Ethereum’s more experimental and non-financial applications.
These applications, while culturally and globally significant, are not expected to be primary revenue drivers.
He noted,
“Low-risk DeFi can play a similar role for Ethereum.”
Buterin highlighted its capacity to underpin the network’s diverse offerings without relying on them for profit.
Reflecting on his earlier skepticism toward DeFi, Buterin acknowledged that the sector’s initial focus on speculative trading and high-risk yield farming raised concerns about sustainability.
He cited the 2022 Yuga Labs’ Otherdeed sale, where a poorly optimized smart contract triggered a costly gas war, as an example of past inefficiencies that drove high fees on Ethereum.
However, he noted that the DeFi landscape has since matured, with risks diminishing as global regulatory frameworks evolve.
“Hacks and losses are increasingly being pushed out to further edges of the ecosystem,” Buterin observed, where users engage in more speculative activities.
He argued that, for many, the risks of traditional finance (TradFi) now outweigh those of DeFi, making the latter a compelling alternative.
Buterin’s post subtly contrasted Ethereum’s trajectory with other blockchain ecosystems where memecoins dominate fee generation.
Without naming competitors, he stressed that Ethereum’s revenue should stem from applications that are “not actively unethical or not embarrassing.”
He cautioned against ecosystems overly reliant on politically charged memecoins, which he believes undermine claims of positive global impact.
“It’s just not possible to say with a straight face you are excited about the ecosystem because it’s positively changing the world, if its single largest application is political memecoins,” he wrote, emphasizing the need for principled revenue sources.
Looking ahead, Buterin envisioned low-risk DeFi evolving into innovative applications, such as reputation-based undercollateralized lending, integration with prediction markets, and a shift from USD-based stablecoins to alternative value forms like “flatcoins.”
These developments, he argued, would strengthen Ethereum’s economic and social contributions while fostering synergy with experimental projects.
He shared,
“Low-risk DeFi is already supporting the Ethereum economy, it is making the world a better place even today, and it is synergistic with many of the more experimental applications that people on Ethereum are building.”
The blog post comes amid significant changes within the Ethereum Foundation, now led by co-Executive Directors Hsiao-Wei Wang and Tomasz K. Stańczak.
In 2025, the Foundation launched its “Trillion Dollar Security” initiative, unveiled a comprehensive privacy roadmap, and restructured its grants program to optimize resources.
These efforts reflect Ethereum’s ongoing commitment to enhancing its infrastructure and global impact.
Buterin’s call to action underscores a strategic vision for Ethereum: a network where low-risk DeFi serves as a stable economic engine, enabling the pursuit of innovative, culturally significant applications.
By focusing on sustainable and ethical revenue streams, Ethereum aims to solidify its role as a transformative force in blockchain technology.
As Buterin concluded,
“It is a project that we can all be proud of,” signaling a renewed emphasis on aligning economic viability with Ethereum’s broader mission to drive meaningful change.