PANews reported on June 1st that Ethereum co-founder Vitalik Buterin published an article on EthResearch proposing a DeFi design based on options rather than collateralized debt positions (CDPs) and forced liquidation. This model tracks asset indices through an option structure, allowing users to avoid the immediate liquidation common in traditional DeFi during periods of high market volatility, instead deviating from their target exposure in a smoother, non-linear manner.

Vitalik believes that a key advantage of this approach is that it doesn't rely on real-time price oracles, but instead can operate based on "slow oracles" used in scenarios such as prediction markets, thus reducing the risk of oracle manipulation. He stated that he would prefer to hold algorithmic stablecoins built on this mechanism compared to algorithmic stablecoin architectures that rely on real-time price updates.

However, the design still faces the challenge of periodic rebalancing, especially how to reduce slippage costs during the rebalancing process, which remains an unresolved issue.

In addition, Vitalik cited previous views, suggesting that in the long run, the reliance on the stability of a single fiat currency could be gradually reduced, and value stability could be achieved by individuals or institutions configuring their own asset baskets (Customized Basket).