Ethereum co-founder Vitalek Boutherin presented the concept of creating synthetic assets using options, which would eliminate traditional debt positions and the risk of forced liquidations. According to him, the current DeFi protocols are vulnerable during sharp market downturns, as secured debt triggers cascade liquidations, creating excessive pressure on the network and prices. The new scheme involves issuing a pair of assets (P and N) with price-sheet S and execution date M by dividing 1 ETH, which can be repaid at any time, and upon exposure the funds are distributed among holders based on the oracle’s readings.

The key advantage of the architecture, the developer said, is its resistance to manipulation and the ability to use "slow" oracles similar to those used in market predictions instead of high-speed price feuds. "Since the total payout is always 1 ETH, there is no possibility of liquidation," Boutherin emphasized, noting that to maintain a stable exposure, such as peg to the dollar, It is proposed to use deeply profitable options with automatic rebalancing through DAO or local skippers. The programmer added that he would feel "much more secure" by keeping algorithmic stackers built on such architecture.

Among the potential drawbacks of the concept, Boutherin highlighted the risk of slippage with frequent rebalancing, which could cost up to 2% per year, quadratic deviation from the target index, and the difficulty of implementing effective onchine automation. The implementation of this model could be an important step in the evolution of the ecosystem, which earlier in March, the founder of Ethereum called for to be redesigned to accommodate privacy and artificial intelligence, and also proposed a plan to move to a binary state tree and a long-term replacement of EVMs.