Vitalik points out the three major pain points of crypto stablecoins, and decentralized solutions still need breakthroughs

Recently, Vitalik expressed that the current crypto market has an increasing demand for decentralized stablecoins, but achieving this vision still faces multiple technical and economic challenges.

**Breaking free from the dependence on USD pricing**

Vitalik believes that existing stablecoin designs overly rely on USD price tracking, which contradicts the original intention of establishing a national-level resistance system. An ideal decentralized stablecoin should explore tracking mechanisms based on a basket of assets or other valuation indicators to reduce exposure to a single fiat currency. This diversified pricing mechanism can not only enhance system resilience but also provide global users with more flexible value storage options.

**Oracle security and censorship resistance**

Vitalik points out that the centralization risk of oracles is a major hidden danger for stablecoin protocols. If oracles are easily bought or manipulated by large capital entities, the protocol must set extremely high costs for value extraction to prevent flash loan attacks, which directly weakens system efficiency. Designing truly decentralized oracles that are difficult for a single fund to control is key to ensuring the long-term reliability of stablecoins.

**Long-term competitiveness of staking yields**

For stablecoins to achieve sustainable development, they must also address yield issues. Currently, the yield performance of many decentralized stablecoins often lags behind mainstream staking assets, leading to user attrition and capital outflows. Vitalik emphasizes that if stablecoins cannot offer competitive yield incentives, they will struggle to accumulate sufficient liquidity and market recognition in the long run.

Solving these three issues will directly determine whether the next generation of decentralized stablecoins can dominate the crypto ecosystem.