Ethereum Foundation Invests $120M in DeFi Protocols
1min read The Ethereum Foundation has made a significant move by allocating $120 million worth of Ethereum (ETH) to various decentralized finance (DeFi) protocols. This strategic decision comes in response to growing concerns about the foundation's previous approach of selling ETH to cover operational expenses.
On February 13, the Ethereum Foundation deployed 45,000 ETH across Compound, Aave, and Spark. The allocation included 4,200 ETH to Compound, 10,000 ETH to Spark, and 30,800 ETH to Aave, with ETH priced at around $2,600 at the time. This $120.4 million investment marks a significant shift toward more sustainable funding methods for the Ethereum Foundation's ongoing initiatives.
The Ethereum Foundation's decision to allocate $120 million worth of Ether into DeFi protocols has sparked excitement and optimism within the community. Aave founder and CEO Stani Kulechov hailed the move, calling the 30,800 ETH deployed into Aave the foundation's "biggest allocation in DeFi." Kulechov expressed his belief that "DeFi will win," as the Ethereum Foundation adds substantial liquidity to the Aave ecosystem.
The community also echoed similar sentiments, with many appreciating the shift away from ETH sell-offs to more sustainable funding methods. 0xNessus, the pseudonymous co-founder of HyperLand, quipped, "Kinda crazy that after so many years they just started doing this. All we had to do was bully them." Others acknowledged the move's importance, with one comment stating that it is a "solid move," and another adding, "Took you years to invest in the ecosystem instead of selling. But better late than never."
The Ethereum Foundation's pivot toward DeFi signals a strategic effort to achieve long-term sustainability by leveraging yield-generating protocols. By reducing reliance on direct ETH sales, this move could create a self-sustaining funding model. However, the approach isn't without risks—market volatility and regulatory uncertainties could affect returns and liquidity management.
From a price perspective, Ethereum was trading around $2,708 at press time, showing signs of consolidation after recent downward pressure. The RSI at 39.28 suggests ETH 
