Ethereum Foundation injects nearly $120 million worth of ether into DeFi lending protocols

The Ethereum Foundation has transferred portions of its ether holdings into decentralized finance protocols, specifically Aave and Spark.It moved 30,800 ether ($81.6 million) into Aave, the largest DeFi lending platform. Of this, 20,800 ETH ($55 million) was deposited on Aave's core market and 10,000 ETH ($26 million) on Aave Prime.Another 10,000 ETH ($26 million) was allocated to Spark, which is part of the MakerDAO ecosystem and provides lending services similar to Aave. A further 4,200 ETH ($11.2 million) was supplied to Compound’s lending platform. By supplying its ETH into these protocols, the foundation would start earning yields on its DeFi deposits, which could be seen as a way to appreciate the value of its treasury without selling assets. These positions may earn an annualized $1.5 million yield based on the 1.5% supply rate.Last month, the Ethereum Foundation moved 50,000 ETH to a multi-sig wallet to support DeFi protocols following public scrutiny of its treasury management.The foundation has historically sold ether for operational purposes, but this has been criticized. Community members have also suggested leadership changes, including replacing the executive director, Aya Miyaguchi.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.