Ethereum co-founder Vitalik Buterin just highlighted a major breakthrough for the ecosystem: the launch of the Cleave testnet.
This protocol aims to realize a vision that Vitalik has long advocated: replacing CDPs (collateralized debt positions) and traditional liquidation mechanisms with an options-based approach. In a nutshell, the goal is to eliminate the forced liquidation risk that burdens DeFi users.
How does it work?