The Ethereum Foundation (EF) borrowed $ 2 million in GHO, a decentralized stablecoin developed by AAVE, in a move that signed a deeper engagement with decentralized financial techniques (DEFI).
In a post of May 29 X, Aave founder Stani Kulechov said the foundation borrowed $ 2 million in GHO tokens. “The EF not only provides ETH to AAVE, but also borrowing from AAVE,” wrote Kulechov, describing the development as “the whole Defi Circle.”
GHO is a decentralized, overcollateralized stablecoin native to the Aave Protocol. Unlike centralized stablecoins, GHO is governed by AAVE’s decentralized autonomous organization (DAO), which oversees interest rates, collateral requirements and facilitator selection.
The move features the growing EF interaction with the Defi Ecosystem, moving toward more sophisticated Treasury techniques.
The foundation did not immediately respond to a request for comment.
The Ethereum Foundation previously appointed $ 120 million in Defi
Moving the foundation to borrow GHO follows a past $ 120 million expansion in various protocols, which has signed a transition to how it manages crypto handles.
In February, the EF assigned 45,000 ether (Eth) in various defi protocols, including AAVE, spark and compound. At this time, Ether will cost $ 120 million.
Kulechov had previously described the expansion of funding as the “largest allocation of the foundation in the Defi. Due to the move, AAVE founder said Defi would win, expressing optimism as the EF added liquidity to the protocol.
In addition to Kulechov, community members also celebrated the transfer, supporting the ETH Holdings Management Shift. A member of the community said the development was a win, which states the foundation should “maintain it,” as an X user said it would be positive if the EF continued to use their funds in this way.
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The cornerstone of the foundation that sells ether
In January, members of the Ethereum community called the Foundation to explore successors for selling ETH for funding funding. The community has suggested defi tools such as staking and borrowing stablecoins against ETH.
Eric Conner, co-author of the EIP-1559, criticized the sale of ETH, saying that the main case of foundation use seems to have thrown its holdings. He called the skill “crazy,” urging the EF to bet or use a defi instead of selling.
Anthony Sassano, host of The sun -day -dayIt is suggested that the EF stake part of its ETH and sell the staking rewards. Members of the community also float the idea of using AAVE to borrow stablecoins against its holdings.
https://www.youtube.com/watch?v=FWO0hw_94a4
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