Catenaa, Sunday, February 16, 2025 –The Ethereum Foundation has injected 45,000 ETH – valued at approximately $120 million—into major decentralized finance (DeFi) protocols, marking its largest liquidity move to date.
The allocation, disclosed Thursday, aims to generate passive yield while reducing the need for ETH sell-offs to fund operations.
The move comes amid growing concerns over Ethereum’s inflationary pressures, as increased Layer-2 adoption reduces transaction fees and limits ETH burns.
Of the total allocation, 30,800 ETH ($81.6 million) was deposited into Aave, with 20,800 ETH directed to its core market and 10,000 ETH to Aave Prime.
Spark, a MakerDAO-affiliated platform, received 10,000 ETH ($26 million), while Compound was allocated 4,200 ETH ($11.2 million).
By distributing assets across these lending platforms, the Ethereum Foundation expects to generate approximately $1.5 million annually, assuming an average supply rate of 1.5%.
Aave CEO Stani Kulechov hailed the move as the “biggest allocation in DeFi,” reinforcing confidence in the sector’s long-term sustainability. The foundation, which reported a $970 million treasury in late 2024, has historically taken a conservative approach to asset management, periodically selling ETH during bullish cycles.
Despite this latest investment, the foundation hinted at further liquidity deployments, including potential staking strategies, as it navigates market shifts.
