ETH pivots DeFi support to permissionless, secure, and privacy-focused protocols, applying a test of long-term resilience.
Ethereum (ETH) co-founder Vitalik Buterin has outlined a renewed vision for decentralized finance on the Ethereum network, emphasizing permissionless access, privacy and security as key priorities, according to statements released by the Ethereum Foundation.
The Ethereum Foundation announced that it will support projects that align with these principles, focusing on user control, open systems, and reduced reliance on centralized actors.
Buterin said decentralized finance represents a critical part of Ethereum’s value proposition. DeFi platforms offer savings, risk management and wealth creation tools without permission requirements, operating globally without central controllers, according to the announcement.
“Financial empowerment is a central part of what it means to have agency and freedom in our world today,” Buterin said. “Finance is far from the only thing Ethereum is good for, but it’s an important thing.”
The Ethereum Foundation does not plan to support all blockchain-based financial projects, according to Buterin. Instead, the organization will support open source protocols and prioritize security, maximizing user control while reducing reliance on trusted third parties.
Buterin introduced what he called the “leak test” for DeFi protocols, stating that a protocol should continue to operate if the original development team disappears and remain operational even if the founders become compromised or hostile.
Security remains a central concern for the Ethereum Foundation, according to the announcement. Buterin identified audits, shared standards and wallet protections as key tools, while also highlighting AI-assisted formal verification as an emerging method for improving smart contract security.
Oracle security requires urgent attention, Buterin said, noting that oracles connect blockchains to external data sources and that weak Oracle systems can expose DeFi platforms to manipulation and financial loss. The co-founder called for stronger decentralization in Oracle’s design, describing secure infrastructure as essential to DeFi’s sustainable growth.
Privacy represents another major goal of Ethereum’s DeFi roadmap, according to Buterin. Complex payment systems and financial tools require stricter privacy features, with collateralized debt positions cited as an example requiring privacy-preserving solutions.
Buterin noted that enhanced privacy features could reduce liquidation risks, but would require advanced technical solutions. The co-founder encouraged deeper innovation in decentralized finance, urging developers to go beyond improving existing stablecoins and rethinking fundamental financial issues such as covering future expenses.
Ethereum remains a permissionless network on which anyone can deploy applications, according to the Foundation. However, the Ethereum Foundation will prioritize projects that support user agency and open access, with the stated goal of building a secure, private, and resilient global financial system.