The Ethereum Foundation (EF) has revealed plans to convert 1,000 Ether (ETH) into stablecoins to fund research, grants, and donations, aligning with its broader treasury strategy and involvement in decentralized finance (DeFi) funding initiatives.
This sale, valued at approximately $4.5 million at current prices, was conducted via CoW Swap, a decentralized trading protocol that aggregates liquidity from multiple exchanges to offer competitive prices without relying on a centralized intermediary.
Details regarding the specific stablecoins received in exchange for the ETH were not disclosed in the foundation’s announcement or its treasury policy.
This recent conversion follows EF’s earlier announcement in September regarding a plan to convert 10,000 ETH into stablecoins over several weeks. However, Friday’s transaction appears to be distinct from this initiative, given its smaller scale and use of CoW Swap instead of a centralized exchange.
According to the Ethereum Foundation Treasury Policy, EF aims to “balance returns above a benchmark rate while maintaining EF’s stewardship over the Ethereum ecosystem, particularly focusing on DeFi.”
The increased reliance on stablecoins coincides with EF temporarily halting open grant submissions to its Ecosystem Support Program due to a surge in applications. The foundation stated it will prioritize funding for the most pressing needs of the network.
In April, EF announced a restructuring of its leadership to enhance strategic and operational management. Hsiao-Wei Wang and Tomasz K. Stańczak were appointed as co-executive directors, both of whom previously held roles within EF. In June, the foundation also laid off staff and restructured its core development team.
Related: ‘Vitalik: An Ethereum Story’ focuses more on humanity than on crypto
Vitalik Buterin emphasizes DeFi
Since its inception, Ethereum has remained the leading platform for DeFi applications. Despite increasing competition from other blockchain networks, Ethereum still represents approximately 68% of the total value locked (TVL) across DeFi platforms, based on industry insights.
Ethereum co-founder Vitalik Buterin recently reaffirmed the network’s commitment to decentralized finance, suggesting that “low-risk” DeFi applications could generate more sustainable revenue for the ecosystem, akin to how Google Search supports Google’s business model.
“Low-risk DeFi can serve a similar purpose for Ethereum,” Buterin proposed, highlighting “core functions like payments and savings, and well-known tools such as synthetic assets and fully collateralized lending.”
Magazine: ETH co-founder moves $6M of ETH, crypto index ETF expands: Hodler’s Digest, Sept. 21 – 27
