Ethereum Foundation converts 1,000 ETH for stablecoins to fund R&D, grants

The Ethereum Foundation (EF) announced plans to person 1,000 Ether (ETH) into stablecoins to concern research, grants and donations, aligning with its broader treasury strategy and engagement successful backing decentralized concern (DeFi) initiatives. 

The sale, worthy astir $4.5 cardinal astatine existent prices, was executed via CoW Swap, a decentralized trading protocol that aggregates liquidity crossed aggregate exchanges to connection users competitory prices without relying connected a centralized intermediary.

Neither the foundation’s announcement nor its treasury argumentation specified which stablecoins it would person successful speech for the ETH.

Source: Ethereum Foundation

This latest conversion follows EF’s earlier disclosure successful September that it planned to person 10,000 ETH into stablecoins implicit respective weeks. However, Friday’s transaction appears to beryllium abstracted from that initiative, fixed its smaller standard and usage of CoW Swap alternatively than a centralized exchange.

According to the Ethereum Foundation Treasury Policy, EF seeks to “balance betwixt seeking returns supra a benchmark complaint and extending EF’s relation arsenic a steward of the Ethereum ecosystem, with a peculiar absorption connected DeFi.”

The accrued usage of stablecoins besides comes arsenic EF temporarily paused unfastened assistance submissions to its Ecosystem Support Program, citing an influx of applications. The instauration said it volition alternatively prioritize backing for the network’s astir pressing needs.

In April, EF besides announced a enactment restructuring to amended strategical and operational management. The instauration appointed Hsiao-Wei Wang and Tomasz K. Stańczak arsenic co-executive directors, some of whom antecedently held roles wrong EF. In June, the instauration laid disconnected staff and restructured its halfway improvement team.

Related: ‘Vitalik: An Ethereum Story’ is little astir crypto and much astir being human

Vitalik Buterin doubles down connected DeFi

Since its launch, Ethereum has remained the starring level for DeFi applications. Despite increasing contention from different blockchain networks, Ethereum inactive accounts for astir 68% of full worth locked (TVL) crossed DeFi platforms, according to manufacture data.

While Ethereum’s dominance successful DeFi has declined since 2021, it remains the starring level successful the sector. Source: DefiLlama

Ethereum co-founder Vitalik Buterin precocious reiterated the network’s absorption connected decentralized finance, arguing that “low-risk” DeFi applications could assistance make much sustainable gross for the ecosystem, akin to however Google Search underpins Google’s concern model.

“Low-risk DeFi tin play a akin relation for Ethereum,” Buterin wrote, pointing to “the basal functions of payments and savings, and well-understood tools similar synthetic assets and afloat collateralized lending.”

Magazine: ETH co-founder moves $6M of ETH, crypto scale ETF expands: Hodler’s Digest, Sept. 21 – 27