Vitalik Buterin proposes an options-based DeFi architecture that eliminates liquidations by splitting ETH into paired assets summing back to 1 ETH.

In a research post published Monday, Buterin proposed creating index-tracking assets using options contracts rather than the debt-based structures that underpin much of DeFi today.

Vitalik Buterin proposes replacing DeFi's collateralized debt positions with an options-based architecture to prevent liquidation cascades and reduce oracle risks.