Vitalik Buterin Says DeFi Must Mature! — No More ‘Onchain Finance’ Buzz

Ethereum co-founder Vitalik Buterin said decentralized finance (DeFi) must move beyond broad “on-chain finance” branding.

Instead, Buterin wants to focus on building protocols that are secure, privacy-preserving and resilient even without their founding teams.

In a Feb. 24 post on X, Buterin said DeFi is “a central part of the value that Ethereum provides.”

However, he argued the Ethereum Foundation (EF) is “not interested in supporting ‘on-chain finance’ or even ‘DeFi’ indiscriminately.”

Instead, he outlined a specific target: permissionless, open-source, private, security-first global finance that maximizes user control over assets and minimizes centralized chokepoints and trusted third parties.

A key benchmark, he added, is whether protocols pass the “walkaway test”: continuing to function even if the original team disappears, becomes hostile, or is compromised.

A Line Between “Defi” And The Defi Ef Wants

Buterin framed DeFi as part of Ethereum’s “agency and freedom” thesis.

Permissionless access to savings, risk management and wealth-building opportunities worldwide.

He said the early DeFi era mattered because it invented new primitives, pointing to automated market makers (AMMs).

Buterin argued the next era should recover that ambition.

He urged builders to go deeper than incremental product iterations like “make a better stablecoin,” focusing instead on underlying problems such as risk management and hedging future expenses.

The Walkaway Test And Why It Matters

The walkaway test is a practical decentralization filter.

If a protocol depends on a small group of insiders to keep it alive — or relies on privileged controls that could be abused — it may not meet EF’s vision for global finance.

EF’s DeFi statement, published Feb. 23, points to admin keys, upgrade mechanisms, oracles and interfaces as common risk points.

It argues protocols should “trend toward trustlessness” by reducing discretionary control and minimizing off-chain chokepoints.

What EF Says It Will Prioritize In 2026

Buterin described DeFi as a “complex toolchain” spanning on-chain components and user-side off-chain elements such as wallets and local agents.

He said priorities include audits, standards and wallet safeguards, alongside newer approaches such as AI-assisted formal verification and user-side agents that act as guardrails.

The Ethereum founder also singled out oracle security and decentralization as areas with “a lot of skeletons in the closet,” calling for sustained scrutiny of the assumptions DeFi systems make about off-chain data.

Privacy was another core theme: not only private payments, but privacy for complex DeFi use cases, including designs that could reduce liquidation-sniping risk.

EF’s post adds that it wants clearer coordination with builders, more standards to reduce risk confusion, and privacy as the default infrastructure rather than an opt-in feature.

EF also named two DeFi leads within App Relations: Charles St. Louis (DeFi Protocol Specialist) and ivangbi (DeFi Coordinator).

What Changes For Builders And Users

Ethereum is permissionless, and Buterin noted nothing stops people from deploying insecure protocols or systems that embed centralized trust “in the name of convenience.”

EF’s message is that it will put its weight behind open-source, privacy-first DeFi designed to outlive its creators.