Theoretical stage but clear direction: extract DeFi from the "liquidation panic," and build a more resilient underlying framework.

Vitalik Buterin proposed establishing index-tracking assets in DeFi using options contracts, replacing the existing system centered on debt liquidation to reduce sudden liquidation risks. This approach can smooth out losses caused by price volatility and allows the use of slower price oracles, reducing data error risks, especially suitable for algorithmic stablecoins that rely on oracles. Although still in the theoretical stage, it reflects a rethinking of DeFi infrastructure, aiming to create a more resilient system.