Wu said that Vitalik Buterin believes algorithmic stablecoins should be considered true DeFi: If there are high-quality ETH-collateralized algorithmic stablecoins, even if 99% of the liquidity comes from CDP holders (negative algorithmic dollar positions while holding positive dollar positions elsewhere), users can still transfer dollar counterparty risk to market makers, which is a key feature in itself. Even if algorithmic stablecoins are partially backed by RWA, as long as they remain over-collateralized and highly decentralized overall (so that the failure of any single underlying asset does not affect the overall collateral), they can substantially improve the risk structure for holders. He believes priority should be given to ETH-collateralized algorithmic stablecoins, followed by highly decentralized, over-collateralized RWA models, and gradually shift from "USD-denominated units" to broader diversified indices. https://www.(wublock123.com)/index.php?m=content&c=index&a=show&catid=6&id=56406