V God warns: Low-risk DeFi is the core engine of Ethereum, meme coins should not become the ecosystem's pillar

Ethereum co-founder V神 recently published an in-depth perspective on his blog, pointing out a fundamental issue within the current ecosystem—many blockchains allocate excessive resources to meme coins and speculative assets, while neglecting low-risk DeFi protocols that can truly support long-term development. In V神’s view, only these solid financial infrastructures can provide sustainable economic support for those applications within the ecosystem that are unprofitable but essential.

Revelation from Google’s Business Model: How Stable Protocols Support an Innovative Ecosystem

In his latest article, V神 draws an interesting analogy—comparing low-risk DeFi protocols to Google’s advertising business. This is not an unfounded association. According to public data, Google’s advertising revenue accounts for over three-quarters of its total income. It is this large and stable revenue stream that enables the company to invest in profit-light but meaningful product lines—from Google Maps to Gmail, and various experimental projects.

V神 believes that the Ethereum ecosystem should emulate this model. Low-risk DeFi applications such as payment systems, reserve protocols, and fully collateralized lending, which already have mature models, should become the “profit pillars” of the ecosystem, continuously providing resources for grand experimental projects and non-financial applications. He straightforwardly states: “While other applications are vital to Ethereum’s status and culture, we should not expect them to be the main revenue engines.”

From High-Risk to Maturity: Has the Era Really Changed?

It’s worth noting that V神 himself was once skeptical of DeFi. In its early stages, he believed DeFi carried excessive risks, lacked sustainable business logic, and the industry was overly immersed in speculative trading and high-risk yield farming.

A landmark event occurred in 2022 when Yuga Labs, the parent company of Bored Ape Yacht Club (BAYC), launched the virtual land project Otherdeed. Due to poor smart contract design, bidding wars triggered intense Gas price competition, briefly breaking Ethereum’s single-day transaction fee record. This “Gas War” became a real reflection of early DeFi risks.

However, over time, the situation is changing. Regulatory frameworks are improving, security audit systems are maturing, and incidents like hacker attacks and asset losses are “gradually being pushed to the periphery of the ecosystem, mainly concentrated among more experimental and speculative user groups.” V神 believes that although tail-end risks still require vigilance, for many people around the world, traditional financial risks now surpass those of DeFi.

The Embarrassment Behind Meme Coin Prosperity: Why V神 Won’t Back Down

Although V神 does not directly criticize any specific project in his writing, he draws a stark contrast—blockchain ecosystems dominated by meme coin transaction fees. His stance is unequivocal:

“Ethereum’s profit engine doesn’t necessarily have to be the most revolutionary application, but it should at least be ‘morally acceptable’ or ‘not embarrassing.’ If the largest application in an ecosystem is political meme coins, yet they still claim to be ‘exciting for the ecosystem’ or ‘changing the world,’ no one can say that out loud.”

This statement hits the current pain point of the crypto ecosystem. Many Layer 1 or emerging public chains gain short-term attention due to active meme coin trading but pay a price in brand value and long-term credibility. V神’s perspective indicates that Ethereum is committed to pursuing a more “decent” development path.

The Evolution Blueprint for Low-Risk DeFi: More Possibilities Ahead

V神 further elaborates on the future evolution of low-risk DeFi. Besides the currently relatively mature payment and lending protocols, future developments may include non-collateralized loans based on personal reputation, deep integration of prediction markets with DeFi structures, and even experimenting with new value anchoring methods—such as pegging to inflation-adjusted stablecoins rather than relying solely on USD-pegged assets.

V神’s conclusion is meaningful: “Low-risk DeFi is already supporting Ethereum’s economy. It is making the world better and generating synergistic effects with many experimental applications within the ecosystem. This is a project we can all be proud of.”

This perspective from V神 essentially sets the tone for the Ethereum ecosystem—favoring stability and sustainability over short-term hype and prosperity. In an industry still maturing, such voices are especially valuable.