Vitalik Buterin has emphasized the importance of algorithmic stablecoins in the DeFi ecosystem, suggesting they should be considered genuine decentralized finance. He highlighted the potential of high-quality ETH-collateralized algorithmic stablecoins, noting that even if 99% of liquidity comes from CDP holders with negative algorithmic dollar positions, users can still transfer counterparty risk to market makers, which is a crucial feature. Buterin also mentioned that algorithmic stablecoins partially backed by real-world assets (RWA) can improve risk structures for holders, provided they remain over-collateralized and highly diversified. He advocates prioritizing ETH-collateralized algorithmic stablecoins, followed by highly diversified, over-collateralized RWA models, and suggests a gradual shift from dollar-denominated units to broader diversified indices.