Headline: Ethereum Foundation pivots DeFi support to “cypherpunk‑grade” protocols — privacy, security, and a new “walkaway” test take center stage Ethereum co‑founder Vitalik Buterin and the Ethereum Foundation have laid out a renewed DeFi roadmap that refocuses support on permissionless, privacy‑first and highly secure protocols. The shift is framed around maximizing user control, minimizing reliance on centralized actors, and building financial infrastructure that remains resilient even if its creators vanish or turn hostile. Why this matters Buterin framed decentralized finance as a core piece of Ethereum’s value proposition: permissionless tools for savings, risk management and wealth building that operate globally without central gatekeepers. But the Foundation will not back every blockchain finance project — only those that are open‑source, security‑forward and designed to preserve user agency. The “walkaway test” A key new standard is the “walkaway test.” Buterin says a protocol should keep functioning if its original developers disappear or if founders become compromised. In practice, this means favoring systems that are permissionless, auditable and operationally independent of individual teams. Security and verification Security remains a top priority. The Foundation highlighted audits, shared standards, and wallet protections as essential, and flagged AI‑assisted formal verification as an emerging tool to raise smart‑contract safety. Buterin also emphasized oracle security as urgent: because oracles bridge blockchains to external data, weak designs can expose DeFi to manipulation and losses. He called for more decentralized, robust oracle architectures as foundational infrastructure for sustainable growth. Privacy as core infrastructure Privacy is another major focus. Buterin argued that both basic payments and more complex financial instruments need stronger privacy guarantees — for example, collateralized debt positions where privacy could help reduce liquidation risk. Achieving that will require advanced technical solutions and deeper innovation across DeFi, not just incremental upgrades to existing stablecoins. A challenge to builders Buterin encouraged developers to tackle fundamental financial problems — such as hedging future expenses — rather than simply iterating on the same primitives. While Ethereum remains an open, permissionless platform where anyone can deploy applications, the Foundation will prioritize funding and support for projects that meet these cypherpunk‑grade criteria: private, permissionless, secure and resilient. Bottom line The Ethereum Foundation’s repositioning signals a more selective approach to backing DeFi: preferential support for protocols that pass the walkaway test, prioritize privacy, harden security (including oracle design), and put user sovereignty first. The move steers Ethereum’s DeFi ecosystem toward long‑term resilience and censorship resistance. Read more AI-generated news on: undefined/news

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