Vitalik wants DeFi price crashes to stop triggering automatic liquidations

CryptoSlate Editorial

(03:05 PM UTC)

1 min read

Vitalik Buterin is challenging one of DeFi's most familiar safety mechanisms: the automatic liquidation that closes a debt-backed position when collateral falls below the required backing for the loan.

In a June 1 Ethereum Research post, Buterin proposed building synthetic, index-tracking assets on top of options, with collateralized debt removed from the base design.

The idea would remove the hard…

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