Low-Risk DeFi: Ethereum’s Search Engine for Sustainable Success

Ethereum co-founder Vitalik Buterin has proposed that low-risk decentralized finance (DeFi) could serve as the network’s breakthrough application, providing sustainable economic stability while aligning with its core values. In a blog post titled “Low-risk DeFi can be for Ethereum what search was for Google”, Buterin argued that stable, non-speculative DeFi protocols could generate revenue to support Ethereum’s ecosystem without compromising its decentralized ethos . He likened this relationship to Google’s reliance on search and advertising revenue to fund its broader operations, emphasizing that low-risk DeFi could similarly anchor Ethereum’s financial model .

Buterin highlighted that Ethereum’s current economic landscape is fragmented, with high-fee speculative applications like NFTs and memecoins generating revenue but lacking long-term value. Meanwhile, non-financial projects such as ENS and privacy protocols, while innovative, struggle to sustain the broader ecosystem. This dissonance, he noted, has created tension within the Ethereum community . Low-risk DeFi, he argued, could bridge this gap by offering stable returns through lending, stablecoins, and savings products, which are both accessible and ethically aligned with Ethereum’s mission .

The Ethereum DeFi ecosystem has shown signs of recovery, with total value locked (TVL) surpassing $100 billion in 2025 for the first time since early 2022. Protocols like Aave, which offers stablecoin lending rates of around 5%, and liquid staking services such as Lido, have demonstrated resilience across market cycles . Buterin emphasized that these protocols provide reliable income streams for both users and the network, contrasting them with the volatility of speculative assets. He also noted that regulatory clarity, including the Digital Asset Market Clarity Act, could further legitimize DeFi and attract institutional participation .

A key distinction Buterin made was between low-risk DeFi and Google’s revenue model. While Google’s search advertising generates profits at the expense of user privacy, Ethereum’s decentralized structure could align financial success with ethical outcomes. He argued that low-risk DeFi protocols—by design—avoid the pitfalls of data exploitation and speculative risk, creating a harmonious relationship between “doing well” and “being good” . For example, stablecoins like USDT and USDC offer predictable returns, and innovations such as basket currencies or flatcoins tied to consumer price indices could diversify Ethereum’s economic foundations .

Buterin also addressed Ethereum’s potential to outperform Google’s model. Unlike Google, which centralizes revenue through advertising, Ethereum’s decentralized nature ensures that financial gains are distributed across a network of participants. This structure, he argued, could foster greater financial inclusion and democratize access to services like undercollateralized lending . Such innovations, he suggested, could position Ethereum as a global financial infrastructure, surpassing even Google’s dominance in its domain .

The co-founder acknowledged challenges, including Ethereum’s recent decline in on-chain revenue, which fell 44% to $14.1 million in August 2025 compared to July. However, he attributed this to the Dencun upgrade, which reduced transaction costs on layer-2 networks, rather than a lack of demand . Buterin’s vision hinges on the idea that low-risk DeFi can stabilize Ethereum’s revenue streams while attracting conservative capital, such as institutional investors seeking yield above inflation .

In conclusion, Buterin’s proposal underscores a strategic shift for Ethereum: from a speculative playground to a reliable financial backbone. By prioritizing low-risk DeFi, the network could achieve both economic sustainability and cultural coherence, fulfilling its original vision as a decentralized platform for global finance . As regulatory frameworks evolve and user adoption grows, the success of this model may determine Ethereum’s long-term relevance in the crypto ecosystem.