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#index-products News & Analysis

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DeFiBullishcrypto.news · 2h ago7/10
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Could options replace liquidations in Vitalik’s new DeFi vision?

Vitalik Buterin has proposed an options-based framework for crypto index products that could eliminate forced liquidations by replacing collateralized debt positions with options contracts. This architectural shift addresses a persistent pain point in DeFi where sudden market movements trigger cascade liquidations, potentially stabilizing the ecosystem.

Could options replace liquidations in Vitalik’s new DeFi vision?