The Ethereum Foundation (EF) announced plans to convert 1,000 Ethereum (ETH) into stablecoins to fund research and development, grants, and donations, while also supporting its broader treasury strategy and investments in decentralized finance (DeFi) projects.
This sale is valued at approximately $4.5 million (based on current prices) and is executed through CoW Swap. CoW Swap is a decentralized trading protocol that aggregates liquidity across multiple exchanges to provide users with competitive prices without relying on centralized intermediaries.
The foundation's announcement and its treasury policy did not specify which stablecoin will be used to exchange for ETH.
This conversion follows the Ethereum Foundation's plan disclosed in September to convert 10,000 ETH into stablecoins within a few weeks. However, Friday's transaction was smaller in scale and executed through CoW Swap rather than a centralized exchange, seemingly independent of the previous plan.
According to the Ethereum Foundation's treasury policy, the foundation seeks to "balance the pursuit of returns above benchmark yields with expanding EF's role as a steward of the Ethereum ecosystem, with a particular focus on the DeFi space."
As the use of stablecoins increases, the foundation has also temporarily paused open grant applications for its Ecosystem Support Program, citing a surge in applications. The foundation stated that it will prioritize funding the most urgent needs of the network.
In April of this year, the foundation announced a leadership restructuring to improve strategic and operational management. The foundation appointed Hsiao-Wei Wang and Tomasz K. Stańczak as co-executive directors, both of whom previously held positions within the foundation. In June, the foundation laid off staff and restructured its core development team.
Since the launch of Ethereum, it has been a leading platform for DeFi applications. Despite increasing competition from other blockchain networks, Ethereum still accounts for approximately 68% of the total value locked (TVL) in DeFi platforms, according to industry data.
Ethereum co-founder Vitalik Buterin recently reiterated the network's focus on decentralized finance (DeFi). He believes that "low-risk" DeFi applications can create more sustainable returns for the ecosystem, similar to how Google Search supports Google's business model.
Buterin pointed out that "low-risk DeFi can play a similar role for Ethereum," involving "basic functions of payments and savings, as well as mature tools like synthetic assets and fully collateralized lending."
Related: FDIC to review rules that may affect banks' crypto business relationships
Original: “Ethereum Foundation Converts 1,000 ETH into Stablecoins for R&D and Funding”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
