February 12, 2025
The Ethereum Foundation has deployed $120 million worth of Ether (ETH) into several decentralized finance (DeFi) platforms, marking a shift in how it manages its assets. On February 13, a total of 45,000 ETH was allocated across Aave, Compound, and Spark at an approximate market value of $2,600 per ETH.
Aave received the largest portion, with 30,800 ETH directed into its lending protocol. Spark was allocated 10,000 ETH, while Compound saw an inflow of 4,200 ETH. The move represents a departure from the foundation’s previous practice of selling ETH to finance operations, instead opting to utilize DeFi platforms for potential yield generation and liquidity management.
Industry participants have taken note of the shift. Aave founder Stani Kulechov described the allocation as the largest the foundation has deployed in the DeFi sector. Discussions within the crypto community have highlighted the decision’s potential implications, with some viewing it as a long-term approach to sustaining Ethereum’s ecosystem. However, market volatility and liquidity risks remain factors that could influence the effectiveness of this strategy.
About Ethereum Foundation
The Ethereum Foundation is a non-profit organization focused on supporting the development and adoption of Ethereum. It provides funding for research, protocol upgrades, and decentralized applications to advance the blockchain’s infrastructure.
Website: https://ethereum.foundation/
X: @Etherrewards
About Investor
Aave
Aave is a decentralized liquidity protocol that facilitates lending and borrowing of digital assets without intermediaries. It enables users to deposit cryptocurrencies to earn interest or secure loans using crypto as collateral.
Location: George Town, Cayman Islands
Website: https://aave.com/
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