The non-profit Ethereum Foundation (EF) has allocated $120 million worth of ETH to several lending protocols to enhance reserve yields.
EF Treasury has deployed:
— 10,000 ETH into Spark
— 10,000 ETH into Aave Prime
— 20,800 ETH into Aave Core
— 4,200 ETH into CompoundWe’re grateful for the entire Ethereum security community that has worked diligently to make Ethereum DeFi secure and usable!
— Ethereum Foundation (@ethereumfndn) February 13, 2025
According to The Block, the organization could earn approximately $1.5 million over the year, based on a 1.5% rate.
EF transferred:
- 30,800 ETH ($81.6 million) to Aave;
- 10,000 ETH ($26 million) to Spark;
- 4,200 ETH ($11.2 million) to Compound.
From the 30,800 ETH, the organization allocated:
- 20,800 coins to Aave’s main market;
- 10,000 to Aave Prime.
In November 2024, the organization reported treasury reserves of approximately $970 million. This coincided with an estimate by Justin Drake, which he provided in September.
At that time, the researcher noted that EF had enough funds for about 10 years of operation, based on annual expenses of $100 million.
The foundation has been criticized for periodically selling cryptocurrency from its reserves, which exerted pressure on the market price of ether.
Concerns were also raised about the transparency of EF’s financial activities, with suggestions to use staking to cover expenses.
Recently, discussions about the organization’s operations have intensified. A community member with the nickname fishbiscuit described it as “a week of scapegoating EF CEO Aya Miyaguchi due to dissatisfaction with everything and everyone in Ethereum.”
As a result, Ethereum co-founder Vitalik Buterin announced “significant changes” in the foundation’s leadership. He also outlined the structure’s goals, which largely addressed the raised concerns.
ConsenSys founder and CEO Joseph Lubin proposed replacing Miyaguchi with two co-directors — Ethereum France President Jérôme de Tychey and former researcher Danny Ryan.
In January, EF opened a multi-signature wallet on the Safe platform to participate in the DeFi ecosystem.