The Ethereum Foundation (EF) has quietly taken a tactical step in Defi by borrowing $ 2 million in GHO Stablecoins using packed ETH (WETH) as collateral on the Aave protocol.
Marc Zeller, founder of the Aavechan Initiative, shared The development on May 29, and notes that the use of GHO is in line with Aave’s core value proposition by the foundation, so that ETH holders can unlock liquidity without leaving their positions.
He said:
“They did not have to sell ETH to finance their objectives. Aave is designed for holders with conviction.”
Stani Kulechov, founder of a protocol, reflect This sentiment. He emphasized that the EFH supplies and borrowing on Aave, and calls it a demonstration of Defi’s complete utility cycle.
The Ethereum Foundation has officially not commented on the transaction from the moment of the press.
However, the crypto community has broadly supported the strategy and considering it a cautious approach to Treasury Management and Sustainability in the long term.
Maksym Blazhkun, the co-founder of Wenode, said:
“Borrowing without selling – that is Defi -belief in action. Ethereum Foundation plays smart with Aave.”
According to Defillama data, Aave is the dominant Defi Lending Protocol from Ethereum, with more than $ 43 billion in total value locked (TVL). Gho is the indigenous overcollateral stablecoin from Aave and currently has a circulating stock of $ 249 million.
According to Blockchain Analytics Firm token Terminal, Active Lending and GHO issue are crucial statistics that correlate directly with the ability of a DAO to generate income.
Ethereum Foundation’s Refamp
In the meantime, this loan movement follows EF’s recent efforts to reform his treasury strategy after extensive complaints from the community.
Earlier this year, the Foundation deployed 50,000 ETH on several Defi platforms. This included a deposit of February of 30,800 ETH in an Aave, divided between its core market and Aave Prime. Additional assignments include 10,000 ETH to Makerdao’s Spark and 4,200 ETH to compile.
The loan reflects a strategic shift from the liquidation of ETH to financial activities. Instead, EF now uses Defi Lending to maintain his possession while it generates proceeds.
This approach also distinguishes the basis of the criticism that it was confronted with in January, when it sold 300 ETH worth almost $ 1 million.
