- Ethereum foundation borrows US$2M in GHO stablecoins, shifting away from ETH sales.
- Move marks a deeper adoption of DeFi tools.
- Crypto community supports as a smarter, long-term form of treasury management.
The Ethereum Foundation (EF) has taken a major step forward in decentralised finance (DeFi) by borrowing US$2 million (AU$3.11 million) in GHO stablecoin from the Aave protocol, signalling a shift away from its previous reliance on ETH sales for funding.
In an X post on 29 May, Aave founder Stani Kulechov said that EF is now both supplying ETH to Aave while also borrowing GHO from them, calling the move the “full DeFi circle”.
GHO is a decentralised, overcollateralised stablecoin governed by the Aave protocol and is pegged to the US Dollar and currently has a circulating supply of US$249 million (AU$387.29 million).
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The move is part of EF’s effort to shift away from the practice of selling ETH to fund operations. In January, EF sold 300 ETH worth nearly US$1 million (AU$1.45 million) prompting backlash from the crypto community.
Ethereum developer, Eric Conner, argued that reliance on ETH sales was “insane” and that EF should instead consider alternative strategies using staking and DeFi lending.
EF appears to be following through with this advice. This latest initiative is not EF’s first foray into DeFi. In February the foundation deployed nearly 50,000 ETH across DeFi platforms Aave, Spark and Compound.
Maksym Blazhkun, co-founder of WeNode, praised this strategy, saying “Borrowing without selling – that’s DeFi conviction in action”.
With its latest move, EF is demonstrating a growing commitment to DeFi – one that preserves its ETH holdings, responds to community feedback and reinforces the long-term sustainability of its ecosystem.
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