The Ethereum Foundation has begun selling 10,000 ETH (worth approximately $42.7 million) through Kraken exchange, following a transparency notice about converting assets to fund research, grants, and donations. The foundation plans to execute smaller transactions to minimize market impact and still holds over 224,800 ETH. The decision has drawn mixed reactions: critics, including AaveChan founder Marc Zeller, argue the foundation should use DeFi protocols like Aave instead of centralized sales, while supporters praise the transparency and note that the sale volume is relatively small compared to weekly Treasury purchases. The foundation had previously borrowed using wrapped ETH as collateral, adding complexity to the funding debate.
about Ethereum Foundation Sells 10K ETH, Sparks Funding DebateMarc Zeller
0 posts last weekAave’s USDT Liquidity Drops After $570M Justin Sun-Linked Withdrawal
Aave’s USDT liquidity dropped sharply to under $100 million after a wallet tied to HTX, a crypto exchange associated with Justin Sun, withdrew $570 million from the lending pool within three hours. The withdrawal caused USDT interest rates on Aave to surge, with deposit rates jumping from 3.8% to 29% and borrowing rates climbing from 4.4% to 33.6%. Analysts noted the high utilization could trap large depositors, but Aave’s Marc Zeller downplayed concerns, calling it a ‘small liquidity crush’ and expressing confidence in a quick resolution. Meanwhile, AAVE’s price dipped over 4%, though the protocol remains dominant in DeFi with over $40 billion in total value locked (TVL). The Ethereum Foundation’s recent $2 million loan via Aave underscores institutional confidence despite short-term liquidity stress.
about Aave's USDT Liquidity Drops After $570M Justin Sun-Linked WithdrawalChainlink Oracle Glitch Causes $500K DeFi Liquidations
On May 29, a Chainlink oracle allegedly malfunctioned, reporting the deUSD stablecoin’s value at $1.03 instead of its intended $1 peg. This error caused over $500,000 in liquidations for users on Avalanche’s Euler Finance, particularly impacting those leveraging the high-yield asset. The incident has sparked criticism from industry figures like Chaos Labs’ Omer Goldberg, who questioned Chainlink’s reliance on APIs like CoinGecko for stablecoin pricing. Chainlink’s Community Liaison, Zack Rynes, defended the oracle, stating it accurately reflected market activity and that protocols must interpret the data. Meanwhile, Aave Chan Initiative’s Marc Zeller blamed protocols for treating volatile assets as mature collateral, asserting Chainlink performed as intended.
about Chainlink Oracle Glitch Causes $500K DeFi LiquidationsEthereum Foundation Borrows $2M in GHO Stablecoins via Aave
The Ethereum Foundation (EF) has entered DeFi by borrowing $2 million in GHO stablecoins on Aave, using wETH as collateral. This aligns with Aave’s value proposition, allowing ETH holders to access liquidity without selling their holdings. Aave founder Stani Kulechov praised the move as a demonstration of DeFi’s full utility cycle. The EF has not officially commented, but the crypto community supports the strategy as a sustainable treasury approach. This follows EF’s recent DeFi engagements, including deposits into Aave, MakerDAO’s Spark, and Compound. The borrowing reflects a shift from liquidating ETH to leveraging DeFi for yield generation, distancing EF from past criticism over ETH sales. Aave remains Ethereum’s top lending protocol with $43B in TVL, while GHO’s circulating supply stands at $249M.
about Ethereum Foundation Borrows $2M in GHO Stablecoins via AaveAAVE DAO Launches $4M Token Buyback Program
AAVE DAO has initiated a $4 million token buyback program, approved by an overwhelming 99.63% of voters, as part of its broader tokenomics update. The first phase involves pulling USDT from the Collector Contract to purchase tokens from the secondary market, with $1 million allocated weekly over a month. The program, managed by the Aave Finance Committee (AFC), is designed to run for six months, potentially extending if successful. This move aligns with the Aavenomics Part One Proposal, which emphasizes a ‘Buy and Distribute’ strategy to bolster the Ecosystem Reserve. Additionally, the Aave Swapper contract is anticipated to streamline future buybacks. The initiative follows other recent proposals, such as LEND Deprecation and Umbrella, aimed at enhancing Aave’s DeFi ecosystem. Aave continues to innovate, partnering with Chainlink for Smart Value Recapture and proposing Horizon for DeFi development, though no new token is planned for the latter.
about AAVE DAO Launches $4M Token Buyback ProgramDanny Ryan Gains Support for Ethereum Foundation Leadership Amid Ongoing Discussions
A majority of ETH wallets, holding over 51,198 ETH ($164 million), have informally voted for Danny Ryan as the next leader of the Ethereum Foundation, with 97% of 335 voters in support. Despite this, Ethereum co-founder Vitalik Buterin emphasized that leadership changes will remain under his control until structural reforms are implemented. Meanwhile, discussions about the future of Ethereum include proposals from Justin Sun and Hayden Adams, while the Aave DAO has expressed interest in acquiring the Ethereum Foundation.
about Danny Ryan Gains Support for Ethereum Foundation Leadership Amid Ongoing DiscussionsEthereum Faces Competition and Challenges in the Evolving Crypto Landscape
Ethereum is facing fierce competition from Solana, which has surpassed it in developer growth, while internal debates over governance and scalability persist. The rise of AI agents is transforming DeFi, creating new opportunities and risks, as experts discuss Ethereum’s fragmented ecosystem and its ability to compete in 2025. Predictions for the future of crypto highlight the potential impact of fundamentals-driven projects and the ongoing challenges Ethereum must navigate.
about Ethereum Faces Competition and Challenges in the Evolving Crypto Landscape