Oracles and Staking: The Technical Bottlenecks of Stablecoins

[madtrader]

One major obstacle facing decentralized stablecoins is the reliability of oracles — systems that bring real-world data onto blockchains. Vitalik Buterin warns that oracles must be resistant to manipulation without increasing costs for users or distorting token economics.

He also highlights staking as a delicate balancing act. High yields can destabilize collateral and discourage usage, while low yields reduce incentives. Buterin suggests drastically lowering staking returns and introducing safer staking models, emphasizing that no amount of ETH alone can guarantee stability without robust safeguards.

[nihalsari]

oracles always feel like the weakest link no matter how smart the rest of the design is