The Ethereum Foundation (EF) announced plans to convert 1,000 Ether (ETH) into stablecoins to finance research, grants and donations, aligning with its broader treasury strategy and involvement in funding decentralized finance (DeFi) initiatives.ย
The sale, worth approximately $4.5 million at current prices, was executed via CoW Swap, a decentralized trading protocol that aggregates liquidity across multiple exchanges to offer users competitive prices without relying on a centralized intermediary.
Neither the foundationโs announcement nor its treasury policy specified which stablecoins it would receive in exchange for the ETH.
This latest conversion follows EFโs earlier disclosure in September that it planned to convert 10,000 ETH into stablecoins over several weeks. However, Fridayโs transaction appears to be separate from that initiative, given its smaller scale and use of CoW Swap rather than a centralized exchange.
According to the Ethereum Foundation Treasury Policy, EF seeks to โbalance between seeking returns above a benchmark rate and extending EFโs role as a steward of the Ethereum ecosystem, with a particular focus on DeFi.โ
The increased use of stablecoins also comes as EF temporarily paused open grant submissions to its Ecosystem Support Program, citing an influx of applications. The foundation said it will instead prioritize funding for the networkโs most pressing needs.
In April, EF also announced a leadership restructuring to improve strategic and operational management. The foundation appointed Hsiao-Wei Wang and Tomasz K. Staลczak as co-executive directors, both of whom previously held roles within EF. In June, the foundation laid off staff and restructured its core development team.
Related: โVitalik: An Ethereum Storyโ is less about crypto and more about being human
Vitalik Buterin doubles down on DeFi
Since its launch, Ethereum has remained the leading platform for DeFi applications. Despite growing competition from other blockchain networks, Ethereum still accounts for roughly 68% of total value locked (TVL) across DeFi platforms, according to industry data.
Ethereum co-founder Vitalik Buterin recently reiterated the networkโs focus on decentralized finance, arguing that โlow-riskโ DeFi applications could help create more sustainable revenue for the ecosystem, similar to how Google Search underpins Googleโs business model.
โLow-risk DeFi can play a similar role for Ethereum,โ Buterin wrote, pointing to โthe basic functions of payments and savings, and well-understood tools like synthetic assets and fully collateralized lending.โ
Magazine: ETH co-founder moves $6M of ETH, crypto index ETF expands: Hodlerโs Digest, Sept. 21 โ 27
