{"id":124821,"date":"2025-03-11T08:16:01","date_gmt":"2025-03-11T08:16:01","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=124821"},"modified":"2025-03-11T08:16:01","modified_gmt":"2025-03-11T08:16:01","slug":"ethereum-foundation-not-behind-56m-sky-deposit-developer-says","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=124821","title":{"rendered":"Ethereum Foundation not behind $56M Sky deposit, developer says"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsAn Ethereum developer rejected speculation that the Ethereum Foundation (EF) was behind a recent deposit of more than 30,000 Ether into the decentralized finance (DeFi) protocol Sky, formerly known as MakerDAO.<br \/>\nOn March 10, a wallet address deposited 30,098 Ether (ETH), worth about $56 million, into Sky. Crypto intelligence platform Arkham labeled the address \u201cEthereum Foundation?,\u201d raising speculation that the EF may have moved funds into the lending protocol \u2014 a strategy recommended by the community \u2014 instead of directly selling ETH to fund its operations.\u00a0<br \/>\nHowever, community members quickly dismissed the claims, clarifying that the wallet in question does not belong to the Ethereum Foundation. Eric Conner, the co-author of Ethereum Improvement Proposal (EIP-1559), called a Wu Blockchain report \u201ccompletely fake,\u201d implying that the address doesn\u2019t belong to the EF.\u00a0<br \/>\nAnthony Sassano, host of The Daily Gwei, also cited the report, saying that the wallet does not belong to the EF.\u00a0<br \/>\nSource: Anthony Sassano\u00a0Ethereum wallet likely from an early investor<br \/>\nWu Blockchain later clarified that while the account was suspected of belonging to the Ethereum Foundation, transaction history suggested it was more likely associated with an early Ethereum investor.<br \/>\nThe address received a 4 million Dai (DAI) transfer from the EF ETH Sale in May 2022, and initial ETH funding was traced back to a wallet called jonny.eth.\u00a0<br \/>\nThe address deposited the $56 million into the Sky vault to avoid liquidation as ETH prices tumbled. On March 10, ETH dropped from a high of $2,138 to $1,813, a 15% decline.<br \/>\nThe move allowed the wallet to avoid liquidation, lowering its liquidation price to $1,127.14, 40.19% below ETH\u2019s price of $1,896 at the time of writing.<br \/>\nRelated: Ethereum Foundation forms external council to uphold core blockchain values<br \/>\nEthereum Foundation deployed $120 million into DeFi protocols<br \/>\nWhile the recent deposit into Sky was not linked to the Ethereum Foundation, the EF has faced criticism in the past for selling ETH for stablecoins to fund team salaries and operations. In January, community members suggested that the foundation could instead borrow stablecoins against its ETH holdings rather than sell the assets.<br \/>\nAt the time, Sassano said that instead of swapping ETH for stablecoins, the foundation should consider using Aave to borrow stablecoins against ETH. Sky allows users to do something similar. By depositing ETH, users can borrow DAI.\u00a0<br \/>\nOn Feb. 13, the EF listened to the community and deployed 45,000 ETH, about $120 million at the time, to DeFi protocols Aave, Spark and Compound.<br \/>\nCommunity members celebrated the move, with Aave founder and CEO Stani Kulechov saying, \u201cDeFi will win.\u201d The EF also said there\u2019s \u201cmore to come,\u201d suggesting this is not their last foray into DeFi.\u00a0<br \/>\nMagazine: MegaETH launch could save Ethereum\u2026 but at what cost?<a href=\"https:\/\/cointelegraph.com\/news\/ethereum-foundation-not-behind-56m-sky-deposit?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsAn Ethereum developer rejected speculation that the Ethereum Foundation (EF) was behind a recent deposit of more than 30,000 Ether into the decentralized finance (DeFi) protocol Sky, formerly&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124821"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=124821"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124821\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=124821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=124821"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=124821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}