Ethereum's Vitalik Buterin is rethinking how DeFi handles market crashes

In a research post published Monday, Buterin proposed creating index-tracking assets using options contracts rather than the debt-based structures that underpin much of DeFi today. What to know : Ethereum co-founder Vitalik Buterin proposed replacing DeFi's debt-and-liquidation model with an options-based system that could allow users to gain exposure to assets like the U.S. dollar or crypto indexes without facing sudden liquidations during market downturns. Buterin argued the design could reduce reliance on real-time price oracle, a major source of risk in DeFi, though the approach would require regular rebalancing and remains an early-stage research proposal.