A few days ago, Vitalik Buterin, co-founder of Ethereum, spoke about his desire to find a good balance between decentralization and cooperation within the decentralized finance ecosystem. The DeFi Collective, a non-profit association supporting resilient DeFi protocols, has taken up the subject.
For Vitalik Buterin, the balance between decentralization and cooperation is essential for the DeFi ecosystem
At the end of September, Vitalik Buterin published a blog post entitled “Making Ethereum alignment readable” where he highlighted one of the most important challenges of the Ethereum ecosystem according to him, namely “ the balance – or more precisely, integration – between decentralization and cooperation ».
For the co-founder of Ethereum, it is necessary to ensure that all projects based on his blockchain “ collectively build something that resembles a single ecosystem, not 138 incompatible fiefdoms “. To achieve this, Vitalik Buterin raised the idea of one or more platforms dedicated to analyzing the world of decentralized finance (DeFi), similar to L2beat.
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L2beat presents itself at present like a site listing a large number of layers 2allowing you to have an overview of their state (level of security, decentralization, interoperability, etc.), their activity and their operating methods (Optimistic Rollups, ZK Rollups, etc.).
Vitalik Buterin thinks that similar platforms focused on DeFi protocols would allow the various projects concerned to evolve more easily, because they could identify the subjects on which to move forward in order to catch up.
Also, the Ethereum Foundation, the community around the blockchain of the same name, could more easily identify projects needing increased assistance. However, Vitalik Buterin was clear: “ The Ethereum Foundation will have to stay away from most initiatives of this kind. We will fund these platforms, but we should not be at the origin of these platforms ».
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The DeFi Collective offers a platform similar to L2beat dedicated to DeFi protocols
The DeFi Collective did not miss the call made by the co-founder of Ethereum. The non-profit association founded in October 2023 is known for supporting resilient DeFi protocols.
The organization selects the projects it supports based on technical and responsible criteria, such as resilience, responsible governance and audits, and finances their development. But above all, The DeFi Collective wishes to highlight projects that are truly decentralized and correspond to the principles of decentralization, projects that it calls “Genuine DeFi”.
On the occasion of its first anniversary, The DeFi Collective has drawn up an initial assessment of its activities. The association is pleased to have become an entity “ essential to support critical DeFi infrastructure, » and highlighted its participation in the growth of protocols like Aerodrome, Liquity, Maverick, DYAD and PoolTogether.
This first year was decisive for us. We demonstrated that a nonprofit organization could succeed in DeFi. Our initial objective was to have a positive impact while ensuring our financial sustainability, and it has largely been achieved.
In parallel, the organization announced that it has launched a community database aimed at examining the level of decentralization of the top 100 DeFi protocols. An initiative which comes very close to the type of platform desired by Vitalik Buterin, and which will be available in the coming days.
Find out more – What is decentralized finance (DeFi)?
To design this platform, The DeFi Collective has developed a public framework for assessing the level of decentralization of each DeFi protocol.
For its 2nd year of existence, the association has already announced that it would continue its efforts to improve this framework, and more broadly this platform in order to best support the protocols. She clarified that she would rely even more on community collaboration while bringing in DeFi experts from around the world.
A community initiative reminiscent of the meticulous work of ants, which has earned the members of the collective the nickname “Ants”:
Just as ants work together harmoniously to build their colonies, the goal of the DeFi Collective is to come together to support and promote, on a global scale, the development of technology and projects related to decentralized finance (DeFi).
The DeFi Collective has been a self-funded initiative since its inception, and its on-chain activity is transparently available to supporters and donors.
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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