.png){kind=logo}
Ethereum co-founder Vitalik Buterin has indicated that low-risk decentralized finance (DeFi) systems could provide the network with sustainable revenue. He compared their role to Google Search, which funds many of Google’s other projects through advertising income.
In a blog post on Saturday, Buterin explained that stable returns from blue-chip protocols could anchor Ethereum’s economy. He pointed to lending platforms such as Aave, where rates for stablecoins like USDT and USDC sit at around 5%. Higher-risk tokens, by contrast, offer yields above 10%. According to Buterin, these dependable income streams could support Ethereum’s broader ecosystem without undermining its principles.
Buterin suggested that Ethereum needed to strike a balance between economic sustainability and its values. However, he observed that speculative assets, such as NFTs and memecoins, pay high fees but do little to sustain the Ethereum cultural mission. Non-financial applications, in their turn, represent ideals of the community, though they are not always financially sufficient. This, he claimed, is low-risk DeFi that provides an interface between these two ends.
DeFi Ethereum has shown signs of recovery in 2025. Starting in 2022, TVL has reached a peak of more than $100 billion. This has followed a harsh bear market in 2022 and 2023, during which TVL plummeted across the industry. The current trend of regulations, such as the Digital Asset Market Clarity Act, has piqued the interest of users and institutions.
A survey by DeFi Education Fund found that over 40% of Americans were willing to use DeFi if regulatory measures were tightened. Analysts believe that the introduction of more transparent rules will also lead to mainstream adoption, alongside the stabilization of Ethereum's revenue streams.
However, despite the increase in its adoption, Ethereum's on-chain revenue declined by almost 44% in August to $14.1 million, as compared to $25.6 million in July. This was even though ETH reached a new high of $4,957. The decrease in revenue was partially due to low network charges, which became possible through the Dencun upgrade, which reduced the expense of transactions in layer-2 networks.
Buterin used Google as an example to illustrate the importance of a dependable revenue anchor. He noted that while Google develops innovative products like the Chromium browser and Gemini AI, its profits mainly come from advertising linked to Search. This dependence, he said, often comes at the expense of user privacy.
In contrast, the decentralized structure of Ethereum provides an avenue towards connecting financial sustainability and ethical consequences. Buterin emphasized that an Ethereum revenue generator does not have to be revolutionary but should be moral and respectable.
He also noted that more innovations, such as basket currencies and flatcoins, which are tied to consumer price indices or the use of multiple fiat currencies, can further diversify Ethereum's economic benefits. Buterin believes that low-risk DeFi can align with Ethereum's purpose, enabling it to remain economically robust and independent of market trends.
Also read: Ethereum Could Be Set for a Major Breakout: Here’s Why
