Ethereum Foundation not behind $56M Sky deposit, developer says

3 months ago

An Ethereum developer rejected speculation that the Ethereum Foundation (EF) was down a caller deposit of much than 30,000 Ether into the decentralized concern (DeFi) protocol Sky, formerly known arsenic MakerDAO.

On March 10, a wallet code deposited 30,098 Ether (ETH), worthy astir $56 million, into Sky. Crypto quality level Arkham labeled the code “Ethereum Foundation?,” raising speculation that the EF whitethorn person moved funds into the lending protocol — a strategy recommended by the assemblage — alternatively of straight selling ETH to money its operations.

However, assemblage members rapidly dismissed the claims, clarifying that the wallet successful question does not beryllium to the Ethereum Foundation. Eric Conner, the co-author of Ethereum Improvement Proposal (EIP-1559), called a Wu Blockchain study “completely fake,” implying that the code doesn’t beryllium to the EF.

Anthony Sassano, big of The Daily Gwei, besides cited the report, saying that the wallet does not beryllium to the EF.

Ethereum wallet apt from an aboriginal investor

Wu Blockchain aboriginal clarified that portion the relationship was suspected of belonging to the Ethereum Foundation, transaction past suggested it was much apt associated with an aboriginal Ethereum investor.

The code received a 4 cardinal Dai (DAI) transportation from the EF ETH Sale successful May 2022, and archetypal ETH backing was traced backmost to a wallet called jonny.eth.

The code deposited the $56 cardinal into the Sky vault to debar liquidation arsenic ETH prices tumbled. On March 10, ETH dropped from a precocious of $2,138 to $1,813, a 15% decline.

The determination allowed the wallet to debar liquidation, lowering its liquidation terms to $1,127.14, 40.19% beneath ETH’s terms of $1,896 astatine the clip of writing.

Ethereum Foundation deployed $120 cardinal into DeFi protocols

While the caller deposit into Sky was not linked to the Ethereum Foundation, the EF has faced disapproval successful the past for selling ETH for stablecoins to money squad salaries and operations. In January, community members suggested that the instauration could alternatively get stablecoins against its ETH holdings alternatively than merchantability the assets.

At the time, Sassano said that alternatively of swapping ETH for stablecoins, the instauration should see utilizing Aave to get stablecoins against ETH. Sky allows users to bash thing similar. By depositing ETH, users tin get DAI.

On Feb. 13, the EF listened to the assemblage and deployed 45,000 ETH, astir $120 cardinal astatine the time, to DeFi protocols Aave, Spark and Compound.

Community members celebrated the move, with Aave laminitis and CEO Stani Kulechov saying, “DeFi volition win.” The EF besides said there’s “more to come,” suggesting this is not their past foray into DeFi.