The Ethereum Foundation announced the deployment of 45,000 ETH in various DeFi protocols like Spark, Aave, and Compound, valued at $117.62 million.
Ethereum Foundation's Deployment Strategy
According to the latest update, the Ethereum Foundation has deployed 10,000 ETH in Spark, 10,000 ETH in Aave Prime, 20,800 ETH in Aave Core, and 4,200 ETH in Compound. The total value of these deployments is approximately $117.62 million at the current ETH price of $2613.68.
Criticism and Approach Changes
Previously, the Ethereum Foundation sold ETH directly on the market, which led to criticism over potential negative impacts on price and market stability. In January 2025, they sold over 4,000 ETH, which drew community ire. In response, EF changed its strategy to actively engage with DeFi platforms, supporting the DeFi ecosystem and earning returns without market impact.
Impact on DeFi and Ethereum Ecosystem
This deployment in platforms like Aave and Compound shows the Ethereum Foundation's confidence in decentralized applications, enhancing liquidity and utility. This initiative is seen as a commitment to fostering growth and innovation within the Ethereum ecosystem, garnering community support for its sustainable approach to treasury management.
The Ethereum Foundation's steps toward active DeFi participation demonstrate a commitment to support and enhance the Ethereum ecosystem, potentially leading to further growth and innovation in the market.
