Vitalik Buterin Proposes Options-Based DeFi to Replace Liquidation-Driven Debt Model

Kwon Crash

Published Jun 1, 2026, 9:35 PM UTC

Source: CryptoSource
- Vitalik Buterin is at it again, suggesting we ditch the current DeFi liquidation model for something involving options. Because nothing says "stable finance" like splitting one ETH into two derivative parts that magically sum back to unity. He wants to kill forced liquidations, which is great news for anyone who just got rekt by a 1% wick. Instead of real-time oracles that trigger panic selling, we’d use slow, prediction-market-style feeds. Essentially, he’s proposing to replace immediate financial violence with delayed, bureaucratic confusion. It’s a noble attempt to save the degens from their own leverage addiction, but let’s be honest: if you can’t handle a slow oracle, maybe stick to holding cash under your mattress. At least inflation there is predictable.