Vitalik Buterin Notes Cleave Testnet Launch for No-Liquidation DeFi Derivatives

Ethereum co-founder Vitalik Buterin said his earlier idea of using options to replace CDPs and liquidation mechanisms as a DeFi base layer appears to be moving toward implementation, citing the testnet launch of the no-liquidation derivatives protocol Cleave. According to Foresight News, Buterin strongly recommended that if the project plans to move quickly to mainnet, it should first conduct formal verification. Foresight News added that Cleave’s testnet mechanism allows users to split 1 ETH into a “cash asset” and a “call asset,” with the combined value of the two always equal to 1 ETH.