Ethereum Allocates $120 Million to DeFi Protocols

Ethereum is reporting a financial turnaround. The foundation has allocated funds to the DeFi lending protocols Aave, Compound and Spark.

Currently, EF is facing a crisis due to the sale of ETH tokens to cover operational costs. The foundation is willing to respond to these concerns, but is still facing other challenges.

Ethereum allocates $120 million to lending protocols

Ethereum has been going through some leadership issues recently. It has been involved in the sale of ETH tokens to cover overhead costs, raising concerns among users demanding alternative solutions.

Today, it was discovered that EF has transferred $120 million in tokens to various lending protocols, highlighting a focus on a new financial strategy. EF confirmed the plans on social media:

"We are grateful to the entire Ethereum security community who have worked hard to make Ethereum DeFi safe and usable! There will be further developments, including the exploration of staking. If you have any suggestions or ideas for future implementations, please reply in the comments and let us know!"

Ethereum allocated these resources to three DeFi platforms, putting 42.000 ETH in Compound, 10,000 in Spark, and the rest in Aave (20,800 in Aave Core, 10,000 in Aave Prime).

Aave is a well-known lending ecosystem directly linked to Ethereum. It has seen a surge in the past along with Ethereum's price movements.

Ethereum will reap substantial rewards by leveraging these lending protocols. According to the $1.5 supply rate, tokens will earn about $1.5 million per year. This change is creating a positive image in the community. In response, Vitalik welcomed these moves.

This is one of the Ethereum Foundation's responses to community concerns. However, Ethereum is still facing other challenges, which will test the platform and the team.

Because of leadership issues, recently Eric Connor, a key member of the development team, left the company.

Ethereum has shown a steady decline in prices in recent times.

However, analysts expect $ETH to rise again. The ETFs of ETH are flying as investors buy during the decline. However, this is not enough to trigger a new bullish momentum for the currency.

These lending protocols have the potential to change the fate of the EF. By changing strategy, the leadership has demonstrated a willingness to address community concerns.