Vitalik Buterin, the co-founder of Ethereum, believes low-risk decentralized finance can give the network a stable source of revenue. He explained that simple DeFi tools, like lending stablecoins on platforms such as Aave, can provide steady income while staying aligned with Ethereum’s cultural values. Current lending rates for stablecoins like Tether and USDC are near 5%, while tokens with higher risk can go above 10%. Buterin compared this approach to how Google makes most of its money from search, even though it develops other products like Pixel phones and open-source AI models that generate far less revenue.
He said Ethereum faces a tension. Many apps that have gained popularity, such as NFTs, memecoins, and speculative trading tools, bring in fees but do not always match the principles that first attracted people to Ethereum. On the other hand, semi-financial and non-financial applications that try to reflect those values have not found broad adoption or enough revenue. Buterin argued that low-risk DeFi could resolve this imbalance by giving the blockchain a financial backbone without going against its ethics. He said the revenue generator does not have to be revolutionary, but it should not be harmful or embarrassing to the community.
The Ethereum network has recently seen its DeFi total value locked climb back over $100 billion for the first time since 2022. This measure, known as TVL, fell sharply during the 2022–2023 bear market, but it has been rising again as demand for top layer 1 blockchains grows. At the same time, regulators are paying more attention to decentralized finance. The Digital Asset Market Clarity Act in the United States is one of the proposals that analysts expect could support broader adoption. A recent survey by the DeFi Education Fund and Ipsos found that more than 40% of Americans are open to using DeFi if there are stronger rules. Many people expressed frustration with traditional banks and said they want better security, more control, and greater flexibility.
Buterin also made a direct comparison between Ethereum and Google. He noted that Google creates many useful things, such as the Chromium browser family and mobile devices, but most of its profit comes from advertising tied to its search engine. This incentive model leads the company to gather and store vast amounts of user data, which he criticized as being at odds with Google’s early open-source values. By contrast, he said Ethereum’s decentralized structure allows it to do better than Google because success can align with ethical outcomes. He believes low-risk DeFi gives Ethereum a way to balance revenue generation with fairness.
Buterin mentioned the idea of flatcoins, digital assets tied to consumer price indices, as one possible area of development. He also said DeFi protocols that give easier access to the U.S. dollar could help people in countries with high inflation and low income. These steps, he argued, would allow Ethereum to keep growing while staying true to its roots. Low-risk DeFi would not only strengthen Ethereum’s economy but also support applications that reflect its community’s values. This approach, according to Buterin, gives Ethereum the chance to grow into something greater than Google while keeping its focus on decentralization and stability.
