{"id":130223,"date":"2025-05-29T13:21:33","date_gmt":"2025-05-29T13:21:33","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130223"},"modified":"2025-05-29T13:21:33","modified_gmt":"2025-05-29T13:21:33","slug":"no-more-eth-dumps-ethereum-foundation-turns-to-defi-for-cash","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130223","title":{"rendered":"No more ETH dumps? Ethereum Foundation turns to DeFi for cash"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe Ethereum Foundation (EF) has borrowed $2 million in GHO, a decentralized stablecoin developed by Aave, in a move signaling deeper engagement with decentralized finance (DeFi) strategies.<br \/>\nIn a May 29 X post, Aave founder Stani Kulechov said the foundation borrowed $2 million in GHO tokens. \u201cThe EF is not only supplying ETH to Aave, but also borrowing from Aave,\u201d Kulechov wrote, describing the development as \u201cthe full DeFi circle.\u201d<br \/>\nGHO is a decentralized, overcollateralized stablecoin native to the Aave Protocol. Unlike centralized stablecoins, GHO is governed by Aave\u2019s decentralized autonomous organization (DAO), which oversees interest rates, collateral requirements and facilitator selection.\u00a0<br \/>\nThe move highlights the EF\u2019s growing engagement with the DeFi ecosystem, moving toward more sophisticated treasury strategies.\u00a0<br \/>\nThe foundation did not immediately respond to a request for comment.<br \/>\nSource: Stani KulechovEthereum Foundation previously deployed $120 million in DeFi<br \/>\nThe foundation\u2019s move to borrow GHO follows a previous $120 million deployment into various protocols, signaling a shift in how it manages its crypto holdings.\u00a0<br \/>\nIn February, the EF deployed 45,000 Ether (ETH) across different DeFi protocols, including Aave, Spark and Compound. At the time, the Ether was worth $120 million.\u00a0<br \/>\nKulechov previously described the fund deployment as the foundation\u2019s \u201cbiggest allocation in DeFi.\u201d Because of the move, the Aave founder said that DeFi will win, expressing optimism as the EF added liquidity to the protocol.<br \/>\nApart from Kulechov, community members also celebrated the move, supporting the EF\u2019s ETH holdings management shift. A community member said the development was a win and that the foundation should \u201ckeep it up,\u201d while an X user said it would be positive if the EF continued to use their funds this way.\u00a0<br \/>\nRelated: Ethereum Foundation unveils security initiative to supplant legacy systems<br \/>\nCriticisms of the foundation selling Ether\u00a0<br \/>\nIn January, Ethereum community members called on the foundation to explore alternatives to selling ETH for operational funding. The community suggested DeFi tools like staking and borrowing stablecoins against ETH.\u00a0<br \/>\nEric Conner, co-author of EIP-1559, criticized ETH selling, saying that the foundation\u2019s primary use case seemed to be dumping its holdings. He called the practice \u201cinsane,\u201d urging the EF to stake or use DeFi instead of selling.\u00a0<br \/>\nAnthony Sassano, host of The Daily Gwei, proposed that the EF stake part of its ETH and sell the staking rewards. The community member also floated the idea of using Aave to borrow stablecoins against its holdings.\u00a0<br \/>\nMagazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story<a href=\"https:\/\/cointelegraph.com\/news\/ethereum-foundation-borrows-gho-defi-strategy?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 NewsThe Ethereum Foundation (EF) has borrowed $2 million in GHO, a decentralized stablecoin developed by Aave, in a move signaling deeper engagement with decentralized finance (DeFi) strategies. In&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\/130223"}],"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=130223"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130223\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130223"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}