The Ethereum Foundation has made a significant move by transferring nearly 45,000 ETH, valued at approximately $118 million, into decentralized finance (DeFi) lending protocols. This decision is a response to community requests for increased support for applications built on the Ethereum blockchain.

The foundation has allocated the funds as follows:

• 30,800 ETH to Aave
• 20,800 ETH to Aave’s core market
• 10,000 ETH to Aave Prime
• 10,000 ETH to Spark, the lending protocol of Sky
• 4,200 ETH to Compound

This action follows community dissatisfaction regarding the foundation’s recent ETH sales, including a notable sale of over 100 ETH reported in January. By moving these assets into DeFi protocols, the Ethereum Foundation aims to earn yields from its deposits, potentially generating an annualized yield of $1.5 million based on a 1.5% supply rate. This is not the first instance of the foundation engaging with DeFi, as it had previously transferred nearly 50,000 ETH to a multi-sig wallet to bolster support for the DeFi ecosystem.

📎 Related coverage from: thedefiant.io