Ethereum Foundation Allocates $120 Million to DeFi Loan Protocols
Under pressure from the community, the Ethereum Foundation has moved $120M in ETH into DeFi lending. This shift could boost financial stability and investor confidence.
The Ethereum Foundation (EF) today allocated $120 million in ETH tokens to DeFi lending protocols: Aave, Spark, and Compound.
The Foundation has been in a sustained leadership crisis caused by token sales to pay overhead costs. The EF has shown a willingness to respond to the community, but it still faces tough challenges ahead.
Ethereum Foundation Banks on DeFi Lending
The Ethereum Foundation (EF) has been going through a leadership crisis lately. Specifically, it has been selling ETH tokens to pay overhead costs, and an outraged user base has demanded alternate solutions.
Today, the EF found one, transferring tokens worth $120 million into a few DeFi lending protocols.
“We’re grateful for the entire Ethereum security community that has worked diligently to make Ethereum DeFi secure and usable! More to come, including exploring staking. If you have suggestions or ideas for future deployments, reply in the comments below and let us know!” the Ethereum Foundation claimed on social media.
The EF picked three DeFi lending protocols for this allocation, putting 10,000 ETH into Spark and 4,200 into Compound. The rest went to Aave: 10,000 to Aave Prime and 20,800 to Aave Core.
Aave is a popular lending protocol that has been particularly entangled with Ethereum. In the past, it has surged dramatically in response to ETH price moves.
By using these DeFi lending protocols, the EF will be able to reap substantial rewards passively. Based on a 1.5% supply rate, these tokens will earn around $1.5 million annually. The community has responded positively to these changes, and Vitalik Buterin warmly welcomed them on social media.
In some ways, this turn to DeFi is a prime example of the EF actually responding to community pressure. However, the Foundation is still facing a lot of other challenges that will truly put it to the test.
When it comes to specific demands, Buterin has been willing to adapt to community pressure, but he has resolutely refused challenges to his leadership.
Meanwhile, Ethereum’s price has seen a continued decline lately. The market still shows a strong confidence that it will return: ETH ETFs are soaring because traders are buying the dip. Nonetheless, this won’t be enough to create bullish new momentum by itself.
Ethereum Monthly Price Chart. Source:
BeInCrypto
Ultimately, these DeFi lending protocols might make a real difference in changing the EF’s fortunes. By changing tactics here, Ethereum’s leadership has demonstrated a willingness to respond to the community.
Between a show of good faith and strong investor confidence, another small push might start to turn things around for ETH’s market performance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stablecoin Legislation Booms Globally, Why Is China Taking the Opposite Approach? An Article to Understand the Real National Strategic Choices
Amid the global surge in stablecoin legislation, China has chosen to firmly curb stablecoins and other virtual currencies, while accelerating the development of the digital yuan to safeguard national security and monetary sovereignty. Summary generated by Mars AI. This summary is produced by the Mars AI model and its accuracy and completeness are still being iteratively improved.
Liquidity migration begins! Japan becomes the Fed's "reservoir," 120 billions in carry trade returns set to ignite the December crypto market
The Federal Reserve has stopped quantitative tightening and may cut interest rates, while the Bank of Japan plans to raise rates, changing the global liquidity landscape and impacting carry trades and asset pricing. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its content are still under iterative improvement.
Weekly Hot Picks: Bank of Japan Sends Strongest Rate Hike Signal! Is the Copper Market Entering a Supercycle Rehearsal?
The leading candidate for Federal Reserve Chair is being questioned for potentially "accommodative rate cuts." Copper prices have reached a historic high, and a five-hour meeting between the United States and Russia ended without results. Expectations for a Japanese interest rate hike in December have surged, and Moore Threads' stock soared more than fivefold on its first day... What market moves did you miss this week?
Monad Practical Guide: Welcome to a New Architecture and High-Performance Development Ecosystem
This article will introduce some resources to help you better understand Monad and start developing.
Trending news
MoreCrypto prices
More
