Ethereum Foundation Adopts DeFi Strategy, Sends 45,000 ETH to Aave, Spark, and Compound

The Ethereum Foundation has harkened to community clamoring, sending $120 million worth of ETH to DeFi lending platforms in a new treasury strategy. Market intelligence platform Arkham disclosed that the Ethereum Foundation’s multi-signature account moved a substantial part of its Ether stash to DeFi protocols. Specifically, the wallet transferred 45,000 ETH, worth $120 million, to three recipients. DeFi platforms Aave, MakerDAO’s Spark, and Compound were the recipients of the tokens. They received 30,800 ETH ($82.2 million), 10,000 ETH ($26.7 million), and 4,200 ETH ($11.24 million), respectively. New DeFi Strategy Meanwhile, the shift is part of the Foundation’s new treasury strategy. This followed a hierarchical change in the non-profit organization’s leadership team amid growing community criticisms. The Ethereum Foundation would start receiving yields on the tokens it recently moved to the DeFi platforms. The new strategy would serve as a means of earning extra funds without selling its Ether stash to fund operational costs. Moreover, the 1.5% supply rate estimation suggests that the positions could accrue up to $1.5 million for the Foundation, relieving the growing burden of incessantly selling its Ethereum. The Ethereum Foundation confirmed the move in a tweet on Thursday. Notably, the agency further disclosed that it would explore other options to boost its treasury, including staking. https://twitter.com/ethereumfndn/status/1889978211100226024 Ethereum Foundation Heeds to Community Backlash Before now, the Ethereum community had vehemently opposed the Foundation’s treasury strategy. Most concerns have been about its periodical Ether sales to fund operational expenses and their detrimental effect on the sentiment and price of the asset. Although co-founder Vitalik Buterin publicly defended the NGO’s operations, the roar intensified. Ethereum enthusiasts called for a change in the leadership cadre, including suggestions to sack executive director Aya Miyaguchi. Meanwhile, the community welcomed the recent development. One user applauded the move, calling it “smart treasury management.” However, another user asked for more deployments to DeFi protocols, stating that “these are rookie numbers” and that the Foundation needs to “pump those numbers up.”