The Ethereum Foundation (EF) has borrowed $2 million in GHO, a decentralized stablecoin developed by Aave, signaling deeper engagement with decentralized finance strategies.
GHO Loan from Ethereum Foundation
Aave founder Stani Kulechov reported that the EF borrowed $2 million in GHO tokens in a May 29 post on X. He noted, 'EF is not only supplying ETH to Aave, but also borrowing from Aave,' describing the initiative as 'the full DeFi circle.'
Previous DeFi Investments
This loan follows the foundation's previous investment of $120 million into various protocols. In February, EF deployed 45,000 ETH across different DeFi protocols, including Aave, Spark, and Compound, valued at $120 million at the time.
Criticism of ETH Sales by the Foundation
In January, members of the Ethereum community called on the foundation to explore alternatives to selling ETH for operational funding. Some suggested DeFi tools like staking and borrowing stablecoins against ETH. Eric Conner, co-author of EIP-1559, criticized the ETH selling, calling it 'insane' and urged the EF to use DeFi instead.
These steps indicate that the Ethereum Foundation is actively seeking new ways to manage its assets in DeFi, demonstrating a focus on more sophisticated financial strategies.
