Ethereum News Today: Lido Founder Borrows 85M USDT from Aave to Buy ETH, Underscoring DeFi's Role in Strategic Crypto Allocation

The Lido founder Konstantin Lomashuk executed a significant transaction in the decentralized finance (DeFi) ecosystem by borrowing 85 million USDT from Aave, a leading blockchain-based lending protocol, to purchase Ethereum (ETH) on July 28, 2025 [1]. The funds were subsequently transferred to Amber Group, which deposited 80 million USDT into a trading platform and withdrew 15,814 ETH (valued at $59.75 million at the time) [2]. This move underscores the growing intersection of DeFi protocols and strategic asset allocation within the cryptocurrency market. By leveraging Aave’s overcollateralized lending model, the Lido founder accessed liquidity without liquidating existing ETH holdings, a tactic designed to amplify exposure to Ethereum’s price movements while maintaining staking activity through Lido’s stETH tokens [1].

The transaction highlights the role of stablecoins like USDT as a liquidity bridge in large-scale crypto operations. Aave’s protocol facilitated the loan, demonstrating how DeFi infrastructure enables transparent, programmable financial tools for institutional-grade transactions. However, the scale of the borrowing—equivalent to $85 million—raises concerns about risk management. If Ethereum’s price fluctuates, the loan-to-value (LTV) ratio could trigger liquidation risks, a scenario mitigated by Aave’s risk protocols but still dependent on market conditions [2].

The interplay between governance and finance is further emphasized by Lido’s decentralized autonomous organization (DAO) structure. While the founder’s actions are not binding on the broader community, they may influence discussions around capital efficiency and asset allocation within the protocol. Acquiring additional ETH through a loan could increase Lido’s staking rewards, as its yields are tied to the total ETH under management [1]. Nevertheless, the transaction lacks explicit disclosures about the collateral securing the 85 million USDT loan, a detail critical for institutional investors seeking transparency in DeFi operations [2].

This event reflects broader trends in self-sovereign finance, where individuals and protocols leverage DeFi tools to optimize portfolio growth. However, the success of such strategies hinges on the stability of both borrowed assets and the protocols facilitating the transactions. For now, the Lido founder’s approach serves as a case study in the operational complexities of leveraging DeFi for large-scale financial maneuvers.

Sources:

[1] https://www.binance.com/en/square/post/27582067130249

[2] http://www.stoone.co.kr/app/market/