The Ethereum (EF) Foundation borrowed $ 2 million in GHO, decentralized Stablecoin developed by Aave, in motion signaling a deeper commitment with decentralized finances (DEFI) strategies.
In the post of May 29, the founder of Aave, Stani Kulechov, said that the Foundation borrowed $ 2 million GHO tokens. “EF not only provides Eth Aave, but also borrowing from Aave,” wrote Kulechov, describing development as “full DEFI wheel”.
GHO is a decentralized, excessively dalled Stablecoin derived from the Aave protocol. Unlike centralized Stablecoin, GHO is regulated by the decentralized autonomous organization Aave (DAO), which supervises interest rates, security requirements and the choice of facilitator.
This movement emphasizes the growing EF’s commitment to the DEFI ecosystem, heading towards more sophisticated tax strategies.
The foundation did not immediately answer to the request for comment.
Ethereum Foundation has previously implemented $ 120 million in DEFI
The transfer of the Foundation to borrowing GHO is in line with the previous implementation worth $ 120 million in various protocols, signaling a change in the field of cryptographic management of farms.
In February EF he implemented 45,000 ether (ETH) on various DEFI protocols, including Aave, Spark and Compound. At that time, the ether was worth $ 120 million.
Kulechov had earlier described the implementation of the fund as “the greatest allocation of the Foundation in DEFI.” Due to the removal, the founder of Aave said that Defi would win, expressing optimism when EF added liquidity to the protocol.
In addition to Kulechova, community members also celebrated this movement, supporting the change of Eth Holdings Management. A member of the community said that development was a victory, saying that the foundation should “keep it”, while the user X said that it would be positive if EF continued to exploit his funds in this way.
Related: Ethereum Foundation presents a security initiative to displace older systems
Criticism of the Ether Seller Foundation
In January, members of the Ethereum community called the foundation to examine alternatives to ETH sales for operational financing. The community suggested DEFI tools, such as erecting and borrowing Stablecoin against ETH.
Eric Conner, co-author of EIP-1559, criticized ETH sales, saying that the main case of using the foundation seemed to lose its shares. He called the practice “crazy”, calling EF to participate or exploit DEFs instead of sales.
Anthony Sassano, host Daily weekHe suggested that EF the ETH part and sold prizes. A member of the community also raised the idea of using Aave to borrow Stablecoin against his farms.
https://www.youtube.com/watch?v=fwo0HW_94A4
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