The Ethereum Foundation (EF) borrowed 2 million US dollars in GHO, a stable coin developed by AAVE, to signal a deeper examination of decentralized financial strategies (Defi).
In a post on May 29, Aave founder Stani Kuechov said that the inspiration lent $ 2 million on GHO token. “The EF not only delivers an ETH for AAVE, but in addition borrowed from Aave,” wrote Kulechov and described the event as “the total defi circle”.
GHO is a decentralized, over -collateralized stable coin that’s native to the Aave protocol. In contrast to centralized stable coins, GHO is subject to the decentralized autonomous organization (DAO) of AAVE, which supervises rates of interest, the collateral and the number of the moderator.
The step underlines the growing commitment of the EF with the Defi ecosystem and moves to more demanding strategies for the treasury.
The foundation didn’t immediately reply to a request for comments.
Source: Stani Kolkov
The Ethereum Foundation previously used 120 million US dollars in Defi
The step of the inspiration to borrow GHO follows an earlier use of $ 120 million in various protocols and signals a shift because it manages its crypto stocks.
In February, the EF 45,000 Ether (Eth) used various Defi protocols, including AAVE, sparks and connections. At that point, the ether was price $ 120 million.
Kulechov previously described the fund provision because the “best allocation of the inspiration in Defi”. Due to the move, the Aave founder said that Defi would win, which expresses optimism since the EF expanded liquidity to the protocol.
Apart from Kulechov, the community members also celebrated the move and supported the ETH Holdings Management Shift of the EF. A community member said the event was a victory and the inspiration should “proceed”, while an X user said it was positive if the EF continued to make use of its funds in this fashion.
Criticism of the inspiration that ether sold
In January, the members of the Ethereum Community asked the inspiration to explore alternatives to the sale of ETH for operational financing. The community proposed Defi tools reminiscent of stable coins against ETH.
Eric Conner, co-author of EIP-1559, criticized ETH Selling and said that the first application of the inspiration appeared to be released. He called “madness” practice and asked the EF to set or use Defi as a substitute of selling.
Anthony Sassano, the host of the Daily Gwei, suggested that the EF sell a part of his ETH and the incoming rewards. The Community member also has the thought of ​​using AVE to borrow stable coins against its investments.
