Ethereum Foundation Converts 1,000 ETH to Stablecoins
The Ethereum Foundation (EF) announced it will convert 1,000 ETH into stablecoins. The transaction uses CoWSwap’s TWAP feature. This move supports research, grants, and donations. It follows a larger sale last month when EF swapped 10,000 ETH worth $43.6 million into stablecoins on centralized exchanges.
The foundation aims to manage its spending while maintaining sufficient liquidity. Recently, it slowed or paused some grant programs to conserve funds. Some users suggested alternatives like borrowing against ETH via DeFi lending or private deals with large crypto treasuries.
Balancing Treasury Policy and DeFi Growth
EF’s treasury policy focuses on balancing returns with its stewardship role. It seeks returns above a benchmark rate while supporting the Ethereum ecosystem, especially DeFi.
The foundation also paused open grant submissions under its Ecosystem Support Program. It cited a high volume of applications and will prioritize projects addressing Ethereum’s key needs.
Earlier this year, EF strengthened leadership by naming Hsiao-Wei Wang and Tomasz K. Stańczak as Co-Executive Directors. In June, it reorganized its development team and reduced staff to improve efficiency.
Ethereum’s Leading Position in DeFi
Data from DeFiLlama shows Ethereum holds about 61% of all funds locked in DeFi. Solana follows with 9%, Bitcoin 6.4%, and Binance Smart Chain 6%. Other platforms like Tron, Arbitrum, and Avalanche have smaller but growing shares.
Ethereum has led the DeFi space since 2020. However, platforms like Solana and Arbitrum are gradually gaining ground, diversifying the ecosystem.
The Ethereum Foundation’s ETH-to-stablecoin conversion and team changes highlight its focus on smart funding and DeFi support. Ethereum remains strong while addressing critical network priorities.
