[Vitalik Proposes Replacing Liquidation Mechanisms with Options, Exploring New DeFi and Algorithmic Stablecoin Architectures] Ethereum co-founder Vitalik Buterin published a post on EthResearch proposing a DeFi design model based on options rather than collateralized debt positions (CDPs) and forced liquidations. This model uses an options structure to track asset indices, allowing users to avoid the immediate liquidations common in traditional DeFi during periods of extreme market volatility, instead deviating from target exposure in a smoother, non-linear manner. Vitalik believes the key advantage of this approach is that it does not rely on real-time price oracles but can operate using 'slow oracles' designed for scenarios like prediction markets, thereby reducing the risk of oracle manipulation.