Low-risk DeFi is emerging as Ethereum’s potential “revenue anchor,” according to Ethereum co-founder Vitalik Buterin. In a recent blog post, he likened low-risk DeFi to Google Search’s role at Google, arguing it could support the network’s long-term sustainability.
Buterin’s case for a safer DeFi core
Buterin wrote that “low-risk DeFi could play a key role in securing the network’s long-term sustainability.” He said it can act as a dependable base for the broader Ethereum ecosystem. Moreover, he pointed to improved safety across protocols.
According to the post, DeFi losses were over 5% of TVL in 2019. By 2025, he said those losses are “almost zero,” reflecting stronger smart contract security and better practices.
TVL resurgence and shifting perceptions
Ethereum’s DeFi Total Value Locked recently topped $100 billion, the first time since early 2022. As a result, interest in low-risk DeFi has grown alongside safer infrastructure. Buterin also argued that DeFi is “in some cases already safer than tradfi” for many people worldwide.
He attributed this shift to improved regulatory frameworks and smarter designs. Meanwhile, a survey by the DeFi Education Fund found over 40% of Americans are open to using DeFi if stronger laws are put in place.
Key takeaways
Low-risk DeFi could serve as Ethereum’s stable revenue layer. DeFi safety has materially improved, according to Buterin. TVL recovery signals renewed confidence in Ethereum-based finance.
What this means for Ethereum
If low-risk DeFi continues to mature, Ethereum could benefit from steadier fee flows and broader adoption. Therefore, sustained security, compliance, and usability will be crucial next steps.
For background on stable-value mechanisms that underpin many DeFi apps, see our guide on how stablecoins work. For a primer on TVL and market tracking, explore CoinMarketCap.
