Ethereum Foundation Sets Decentralization Standards for DeFi Projects

The Ethereum Foundation has taken a significant step towards promoting genuine decentralization in the DeFi sector by releasing guidelines for projects that seek its support.

The criteria emphasize permissionless, open-source, privacy-preserving, and security-first protocols. The document highlights the importance of ensuring that a protocol continues to function even if its founding team vanishes or turns against its users.

The Foundation's move comes as the DeFi sector faces challenges related to oracle security, which feeds smart contracts with external data. The current state of oracle security is described as a 'drawer packed with unresolved problems' that the sector has avoided addressing.