The Ethereum Foundation has committed 50,000 ETH to increase its involvement in decentralized finance (DeFi) as part of its broader asset management strategy.
Multisig Wallet Setup to Facilitate DeFi Participation
To enter the DeFi ecosystem, the Ethereum Foundation has established a 3-of-5 multisig wallet through the Safe asset custody provider. This wallet will enable secure interaction with various DeFi protocols. The first test transaction has been completed on the Aave platform.
$150M Worth of ETH to Be Seeded into DeFi Wallet
The Foundation plans to seed the new multisig wallet with about $150 million in ETH for active DeFi protocol participation. Users are advised to be patient as transaction signing takes time.
The Foundation’s Strategic Shift Amid Criticism
The Ethereum Foundation has faced criticism for regular ETH sales, prompting a new approach focusing on strategic asset use through staking and DeFi participation.
This new strategy can support Ethereum's long-term growth by creating a sustainable revenue stream for reinvestment in the platform's development.
