Ethereum co-founder Vitalik Buterin has introduced a new roadmap aimed at strengthening the security and finality of Layer 2 (L2) solutions.

His proposal introduces a flexible, multi-proof system designed to support Ethereum’s scalability while preserving its core principles of decentralization and trust minimization.

Ethereum’s New Layer 2 Roadmap

At the heart of Buterin’s technical framework is a “2-of-3” model. This system uses three different proof types—optimistic, zero-knowledge (ZK), and trusted execution environment (TEE) provers.

A transaction is finalized when any two of these agree, significantly reducing the risk tied to relying on a single-proof method. The model offers a pragmatic balance between speed, robustness, and decentralization.

Buterin emphasized the importance of diversification, especially as zero-knowledge systems mature. He warned that shared code among ZK rollups could cause bugs to propagate across implementations, raising systemic risk.

“This means that the finality of rollups can be as fast as zk proving (~<1hr for now) while protecting the system from soundness bugs in the zk system,” Wei Dai, a research partner at 1kxnetwork, explained.

Meanwhile, Buterin’s roadmap also lays out the requirements for what he calls “Stage 2 rollups.” These next-generation rollups would deliver near-instant confirmations, high finality, and strong resistance to failures—even in semi-trusted environments.

Importantly, they would still adhere to Ethereum’s 30-day upgrade delay, a rule that safeguards the network’s stability during transitions.

Buterin Makes Case for Open-Source Funding

Beyond scalability, Buterin is also advocating a cultural shift in how the crypto community approaches development funding.

In a separate blog post, he suggested shifting the focus from “public goods funding” to “open-source funding.”

His concern is that the phrase “public goods” has become politically and socially loaded, often used in ways that prioritize perception over impact.

“A big part of the reason why the term ‘public good’ is vulnerable to social gaming is precisely the fact that the definition of ‘public good’ is stretched so easily,” Buterin argued

He noted that public goods funding is vulnerable to social desirability bias. This often favors those who can navigate community politics over those who deliver meaningful value.

In contrast, open-source funding emphasizes transparency, collaboration, and the building of tools that genuinely benefit the broader ecosystem.

Buterin believes that the goal should not be to fund any open-source project indiscriminately but to support those that create maximum value for humanity.

This stance aligns with his broader vision of a sustainable, community-driven blockchain infrastructure.

Together, Buterin’s proposals could redefine both the technical direction of Ethereum’s scalability efforts and the philosophical foundations of its funding strategies—reinforcing the network’s long-term commitment to decentralization, security, and public benefit.

A coalition of US Senators is raising serious concerns about a potential conflict of interest involving President Donald Trump and an upcoming stablecoin project called USD1.

The digital asset, backed by World Liberty Financial (WLF), has drawn scrutiny due to Trump’s reported ties to the company behind it.

Warren-Led Group Flags Risks of Presidential Involvement in USD1 Approval

On March 28, a group of lawmakers led by Senator Elizabeth Warren sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC).

They asked both agencies to clarify how they plan to uphold regulatory integrity regarding the impending USD1 stablecoin.

The request comes as Congress considers the GENIUS Act, a bill that would grant the Fed and OCC broad authority over stablecoin regulation.

“The President of the United States could sign legislation that would facilitate his own product launch and then retain authority to regulate his own financial company,” they noted.

The Senators warned that allowing a sitting president to profit from a digital currency regulated by federal agencies under his influence poses a major threat to financial stability. They argue that such a situation is without precedent and could erode public trust in the regulatory process.

“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” They argued.

The letter outlines scenarios where Trump could directly or indirectly influence decisions involving USD1.

For instance, the President could interfere with the OCC’s evaluation of the stablecoin’s application or discourage enforcement actions against WLF.

They also suggested that Trump could pressure the Federal Reserve to provide emergency financial support for USD1 during market volatility—support that may not extend to competing stablecoins.

“[Trump] could also attempt to direct the Fed to establish a master account at the central bank for WLF. He could intervene to deny such assistance to USD1’s competitors,” the lawmakers stressed.

In addition, the Senators noted that the GENIUS Act contains no conflict-of-interest provisions that would prevent Trump from using his office to benefit financially from the stablecoin’s success.

This absence of guardrails, they say, opens the door to regulatory favoritism and economic manipulation.

Considering this, the lawmakers demanded clarification on how the Fed and OCC would handle key issues. These include the approval process for USD1, the potential creation of liquidity support during crises, and WLF’s oversight of potentially unsafe business practices.

The agencies must submit their responses by April 11, 2025. The letter was signed by Senators Elizabeth Warren, Ron Wyden, Chris Van Hollen, Jack Reed, and Cory Booker.

Ethereum (ETH) is under pressure once again, dropping around 3% in the last 24 hours and falling below the $1,800 level. This decline is putting several large leveraged positions at risk, including two massive whale vaults on Maker that collectively hold over $235 million worth of ETH.

With on-chain indicators flashing warning signs and technical levels being tested, the stakes are rising for both bulls and bears. As ETH hovers near critical support, the coming days could prove pivotal for its short-term price trajectory.

Ethereum Whales Could Get Liquidated

Ethereum has dropped around 3% in the past 24 hours, slipping below the $1,900 mark once again. This decline is putting pressure on large leveraged positions within the DeFi ecosystem.

According to on-chain data from Lookonchain, two major whale vaults on Maker—one of the leading decentralized lending protocols—are now approaching critical levels.

Together, these vaults hold 125,603 ETH, valued at approximately $235 million. With ETH’s price nearing their liquidation thresholds, both vaults are at risk of being forcibly closed if the downward trend continues.

In Maker’s system, users can deposit ETH into vaults as collateral to borrow the DAI stablecoin. To avoid liquidation, the collateral must stay above a certain health ratio—essentially a safety buffer.

When that buffer gets too low, the protocol automatically sells off the collateral to cover the debt. In this case, the health ratio of the whale positions has fallen to just 1.07, dangerously close to the minimum threshold.

One vault faces liquidation at an ETH price of $1,805, and the other at $1,787. If ETH continues to dip, these vaults could trigger significant sell pressure, potentially accelerating the downward move.

Indicators Suggest The Downtrend Could Continue

Ethereum’s recent price drop has pushed its Relative Strength Index (RSI) back into oversold territory, currently sitting at 24.37. Just three days ago, the RSI was at 58.92, indicating how quickly sentiment has shifted.

The RSI is a momentum indicator that measures the speed and change of price movements, with readings below 30 typically signaling that an asset is oversold.

While this suggests that Ethereum may be due for a short-term bounce or relief rally, historical data shows that RSI can remain oversold for extended periods—or even drop further—if bearish momentum stays strong.

Ethereum’s Directional Movement Index (DMI), which signals a strong downtrend, adds to the bearish outlook. The Average Directional Index (ADX), which measures the strength of a trend, surged to 38.6 from 23.47 just a day ago, indicating growing momentum behind the current move.

Meanwhile, the +DI (positive directional indicator) has fallen to 10.6, while the -DI (negative directional indicator) has spiked to 40.23, showing that sellers are firmly in control.

This combination—rising ADX, high -DI, and falling +DI—typically suggests an intensifying bearish trend, meaning Ethereum’s price could remain under pressure in the near term despite already being technically oversold.

Will Ethereum Fall Below $1,800 Soon?

If Ethereum’s downtrend continues, the next key level to watch is the support at $1,823. A break below this level could quickly push the price down toward $1,759—a move that would trigger the liquidation of two major whale vaults on Maker, which are already hovering near their thresholds.

These potential liquidations could amplify sell pressure, making it even harder for Ethereum price to stabilize in the short term. Given the current bearish momentum and weak technical indicators, this scenario remains a real risk if bulls fail to step in.

However, if sentiment shifts and the trend reverses, Ethereum could regain ground and test the resistance level at $1,938.

Breaking above that could open the path toward $2,104, a level that has previously acted as both resistance and support. Should buying momentum strengthen further, ETH might continue climbing toward $2,320 and potentially even $2,546.