Ethereum Foundation Engages in DeFi

The Ethereum Foundation has transferred a portion of its ether holdings into decentralized finance (DeFi) protocols, specifically Aave and Spark.

From its multi-sig wallet, it moved 30,800 ether (worth $81.6 million) into Aave, the largest DeFi lending platform. Of this, 20,800 ETH (around $55 million) was deposited on Aave’s core market, and 10,000 ETH (approximately $26 million) on Aave Prime.

Additionally, 10,000 ETH (valued at $26 million) was allocated to Spark, which is part of the MakerDAO ecosystem and provides lending services similar to Aave. Another 4,200 ETH ($11.2 million) was supplied to Compound’s lending platform.

By supplying its ETH into these protocols, the foundation aims to start earning yields on its DeFi deposits, potentially appreciating the value of its treasury without selling assets. These positions may yield an annualized $1.5 million based on the 1.5% supply rate.

Last month, the Ethereum Foundation moved 50,000 ETH to a multi-sig wallet to support DeFi protocols following public scrutiny of its treasury management.

Historically, the foundation has sold ether for operational purposes, facing criticism from the community. Members have suggested leadership changes, including replacing executive director Aya Miyaguchi.