#options-based

➤ Vitalik Buterin proposes a new DeFi architecture using options contracts to replace the current liquidation-driven debt model. ➤ This new model splits ETH into paired assets that sum to 1 ETH, eliminating forced liquidations and enabling the use of slower, prediction-market-style oracles. ➤ While not suitable for accounting stablecoins due to price drift, the design aims for price stability and addresses rebalancing slippage through optimized market structures.