Vitalik Buterin emphasized on the X platform that algorithmic stablecoins represent the true form of decentralized finance (DeFi). He noted that high-quality algorithmic stablecoins backed by Ethereum or diversified collateral improve risk management by transferring counterparty risk to market makers. Buterin also advocated for DeFi to move away from reliance on the US dollar towards diversified index-based units of account, contrasting this with traditional stablecoins like USDC used in protocols such as Aave.

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