In a move that has left many scratching their heads and others cheering like they just won the lottery, the Ethereum Foundation has decided to allocate a whopping $120 million of Ether to decentralized finance (DeFi) protocols. This decision comes after the community raised a collective eyebrow at the foundation’s habit of selling off ETH like it was going out of style to fund its operations. Who knew that dumping your own currency could be so unpopular? 😅
On the fateful day of February 13, the Ethereum Foundation’s multisignature address made a grand entrance into the DeFi world by depositing 4,200 Ether (ETH) into Compound, 10,000 ETH into Spark, and a staggering 30,800 ETH into Aave. With ETH hovering around $2,600, that’s a total value of about $120.4 million. Just think of all the coffee that could buy! ☕💸
Aave’s founder and CEO, Stani Kulechov, was practically doing cartwheels over the 30,800 ETH (roughly $82.4 million) that found its way into Aave Prime and Aave Core. He boldly declared this to be the Ethereum Foundation’s “biggest allocation in DeFi.” Talk about a vote of confidence! Kulechov also chimed in with a rousing “DeFi will win,” as if he were leading a pep rally for the underdogs. 🎉
And it seems the community is on board with this newfound strategy. Many celebrated the move, as it might just mean the foundation won’t have to resort to selling ETH like it’s a garage sale to cover its expenses. What a relief! 🙌
Community celebrates Ethereum Foundation’s $120 million deployment
Podcaster Mark Jeffrey weighed in, calling the move “smart.” He went on to say that lending is the beating heart of DeFi, and Aave is the “beating heart of lending.” So, if we’re keeping track, that’s a lot of hearts beating in the crypto world. ❤️
One enthusiastic X user proclaimed this development a win, urging the community to “keep it up.” Meanwhile, another user suggested it would be “a positive thing” if the Ethereum Foundation continued to use their funds wisely. Because, you know, that’s what we all want to hear—more responsible spending! 🎯
Then there’s 0xNessus, the pseudonymous co-founder of lending protocol HyperLend, who couldn’t help but point out the absurdity of the foundation only now engaging with DeFi apps after years of ignoring them. “All we had to do was bully them,” he quipped on X. Ah, the power of peer pressure! 😏
Ethereum Foundation’s ETH selling invites criticisms
But not everyone is singing praises. Back in January, the Ethereum Foundation faced a barrage of criticism for selling ETH to cover its operating expenses and pay its staff. Because nothing says “trust us” like selling off your own currency, right? 🤷♂️
Ethereum Improvement Proposal (EIP-1559) co-author Eric Conner didn’t hold back, stating that the foundation’s No. 1 use case was “dumping ETH.” Meanwhile, Anthony Sassano, host of The Daily Gwei, suggested a more prudent approach: using Aave to stake and borrow stables against their ETH instead of selling it off like it’s last season’s fashion. Smart thinking, Anthony! 🧠
Even Vitalik Buterin, the face of Ethereum, addressed concerns about the foundation staking its ETH, citing regulatory uncertainty and the potential for being forced into a corner regarding Ethereum hard forks. Because who doesn’t love a good regulatory headache? 🤕
Despite the mixed reactions, the Ethereum Foundation has hinted that there’s “more to come,” suggesting that this fund deployment is just the tip of the iceberg. They’re already looking into staking and asking community members for suggestions. So, stay tuned folks, the crypto rollercoaster is just getting started! 🎢
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2025-02-13 15:51