Ethereum Foundation on-course to earn $1.5 million through allocation of 50k ETH to DeFi
The post Ethereum Foundation on-course to earn $1.5 million through allocation of 50k ETH to DeFi appeared on BitcoinEthereumNews.com.
The Ethereum Foundation has allocated 50,000 ETH to several DeFi platforms amid its shift in treasury management approach. On Feb. 13, the Foundation announced via X that it had deposited 30,800 ETH, worth about $82 million, into Aave, a leading DeFi lending protocol. This included 20,800 ETH (equivalent to $56 million) placed in Aave’s core market and 10,000 ETH (around $27 million) allocated to Aave Prime. Additionally, it moved 10,000 ETH (around $27 million) to Spark, a MakerDAO-linked lending platform, and 4,200 ETH (over $11 million) to Compound. Ethereum Foundation ETH Holdings (Source: SpotOnChain) This move comes as a response to criticism over its past practice of liquidating ETH. To address these concerns, the Foundation transferred 50,000 ETH to a multi-signature wallet last month to support DeFi protocols instead of selling assets. Crypto analyst Tom Wan pointed out that the Foundation can now generate passive yield on its ETH holdings. At a 1.5% supply rate, these deposits could bring in around $1.5 million annually. While this represents only a tiny portion of its 2023 expenses, Wan views it as a step toward more sustainable treasury management. Meanwhile, the Foundation has also hinted at further initiatives to enhance its financial strategy, including potential staking strategies. Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies. Source: https://cryptoslate.com/insights/ethereum-foundation-on-course-to-earn-1-5-million-through-allocation-of-50k-eth-to-defi/
Filed under: News - @ February 13, 2025 12:18 pm