The Ethereum Foundation has allocated 50,000 ETH to enhance its participation in DeFi, as part of its broader strategy to manage its holdings and respond to scrutiny.
Multisig Wallet for DeFi
To facilitate its involvement in the DeFi ecosystem, the Ethereum Foundation has set up a 3-of-5 multisig wallet through Safe, previously known as Safe Gnosis. This will enable the Foundation to interact with various DeFi protocols. A test transaction has already been completed on Aave.
$150M ETH in DeFi Wallet
The Ethereum Foundation plans to seed this multisig wallet with approximately $150 million worth of ETH. According to current statements, the process could take a few days. This move is aimed at deeper engagement with DeFi protocols to earn passive income and support the ecosystem.
Community Feedback Response
The Foundation is actively addressing criticism related to its treasury management. Plans to reduce ETH sales in favor of leveraging staking and DeFi participation resonate with community expectations. This strategic shift is underscored by Vitalik Buterin's expressed plans to diversify the Foundation's asset usage.
Ethereum Foundation’s shift towards more active DeFi participation marks a strategic move to improve its treasury management and gain community trust. This also opens doors for gaining a steady passive income needed for platform development.
