- The Ethereum Foundation has deposited $120 million into several DeFi platforms
- Aave Prime and Aave Core received 10,000 and 20,800 ETH respectively
- The foundation intends to use the funds to provide liquidity and reduce selling ETH to cover its expenses
The Ethereum Foundation has deposited $120 million in ETH into Compound, Aave, and Spark to provide liquidity and reduce selling ETH to fund its activities. The funds are spread across four DeFi platforms with Compound and Spark receiving 4,200 and 10,000 ETH respectively while Aave Prime and Aave Core got 10,000 and 20,800 ETH respectively. Aave’s Stani Kulechov hailed the move as “the way” to go, something that boosts the DeFi platforms’ liquidity consequently enabling them to handle large trades.
Ethereum Foundation To Stake ETH?
The foundation said it’ll deposit more funds into other DeFi exchanges and disclosed plans to explore the staking space. The crypto community has embraced the move saying it signals the foundation’s “confidence in Ethereum’s on-chain financial stack.”
More to come, including exploring staking. If you have suggestions or ideas for future deployments, reply in the comments below and let us know!
— Ethereum Foundation (@ethereumfndn) February 13, 2025
Others said it was “great to see [the] Ethereum Foundation actually using Ethereum apps.” Although some said that the foundation should have done it earlier, they described it as “a positive thing” while others said it only agreed to do so after the community bullied them.
Kinda crazy that after so many years they just started doing this. All we had to do was bully them. https://t.co/GzsJ7CRv9E
— ness.hl | YSC (@0xNessus) February 13, 2025
Last month, the Ethereum community expressed its dissatisfaction with the foundation selling ETH to cover its expenses with others accusing it of dumping ETH.
The idea for depositing funds into DeFi platforms came from the community. Announcing the allocation, the foundation asked the community to continue suggesting other areas and platforms to deploy ETH.
Buterin To Restructure Ethereum Foundation
The move comes barely a month after Ethereum co-founder Vitalik Buterin announced he’s restructuring the foundation. Buterin said the new team will focus on supporting Ethereum developers.
He disclosed that he intends to use the opportunity to bring fresh talent into the foundation. It also comes a few days after data indicated that Solana apps are generating more revenue than Ethereum apps.
With the Ethereum Foundation interacting with DeFi platforms on its network, it’s to be seen whether the move will ignite more activities on Ethereum-based DeFi platforms.
