🔥 Vitalik Buterin warns that the DeFi ecosystem on Ethereum is overly dependent on centralized stablecoins like USDC, creating a “single point of failure” risk. Vitalik criticizes “USDC yield” products for chasing profits without delivering genuine decentralized risk management. Vitalik supports alternative models such as ETH-collateralized stablecoins or highly collateralized, diversified real-world asset stablecoins. He cites Aave as an example, where billions of USDC dominate lending activity, to illustrate the current problem. Vitalik’s message is that DeFi needs to reduce reliance on centralized entities and build a more autonomous, sustainable system in the long term.