The Ethereum Foundation has committed 50,000 ETH for participation in decentralized finance (DeFi) platforms, aiming to optimize asset use and reduce market impact.
Multisig Wallet Setup for DeFi Participation
To facilitate entry into DeFi, the Ethereum Foundation has set up a 3-of-5 multisig wallet via Safe. This will help interact with DeFi protocols like Aave.
$150M Worth of ETH to Be Seeded into DeFi Wallet
The Foundation plans to deposit approximately $150 million in ETH into the wallet to actively engage with DeFi protocols. This decision follows discussions about more effective asset management strategies.
Strategic Shift and Criticism
Despite efforts to increase DeFi participation, the Foundation faces criticism on treasury management and transparency. Co-founders Buterin and Lubin hinted at changes to better address competition from other blockchain projects.
The Foundation's shift towards DeFi could provide a steady income stream and support Ethereum's development, reducing the selling pressure on ETH.
