Vitalik Buterin Defines DeFi as Core to Ethereum, Proposes Protocol ‘Exit Test’

Decentralized finance, or DeFi, allows users to trade, borrow, lend and manage assets through smart contracts without banks or centralized platforms. Ethereum co-founder Vitalik Buterin says autonomy and freedom are Ethereum’s core values. He has also set firm requirements for security, decentralization and long-term operation for DeFi projects supported by the Ethereum Foundation.

Speaking at the fourth Hong Kong Web3 Festival on April 20, 2026, Buterin said Ethereum would not join a TPS performance arms race and should prioritize security. He proposed an “exit test” requiring a protocol to continue operating autonomously and securely for at least 10 years even if its founding team and all core developers leave. The test would serve as a key Ethereum Foundation standard for assessing whether a DeFi protocol qualifies for support.