The post Ethereum Foundation borrows $2 million GHO stablecoins from Aave appeared on BitcoinEthereumNews.com.

Ethereum Foundation (EF) has borrowed $2 million worth of GHO stablecoin from DeFi lending platform Aave, using wrapped ETH as collateral. The move marks a departure from the Foundation’s usual ETH sell-offs for its operations. Aave Chan Initiative (ACI) founder Marc Zeller shared the transaction on X to promote using the Aave protocol. According to him, the EF did not need to sell any ETH to fund its objectives. He said: “They didn’t have to sell a single ETH to fund their objectives. Aave is designed for holders with conviction.” While one user observed that the EF is now dumping GHO, Zeller noted that he would allow it. GHO is the decentralized stablecoin issued by Aave and currently has a circulating supply of $249 million The protocol founder, Stani Kulechov, also acknowledged the transaction, describing it as a full-circle moment. Onchain data showing Ethereum Foundation transaction (Source: Marc Zeller) He said: “The EF is not only supplying ETH to Aave but also borrowing from Aave. The full DeFi circle.” Kulechov added that the next step is for the EF to loop on Aave. Looping is a DeFi strategy where users repeatedly borrow, swap, and stake several crypto assets to compound yield and maximize their returns and farm rewards. Ethereum Foundation moves away from selling ETH Interestingly, the recent transaction is not the first time the EF will deploy funds to DeFi protocols based on the network. In February, it deployed 45,000 ETH worth $120 million to various lending protocols such as Compound, Spark, and Aave. At the time, Aave got the most funds, with 30,800 ETH worth $83.4 million, for Aave Core and Aave Prime, causing many people to praise the Foundation’s decision as an endorsement of the DeFi sector. Following that deployment, the EF stated that more is still…

---

Filed under: News - @ May 29, 2025 5:22 pm