The Ethereum Foundation allocates 45,000 ETH to Aave, Spark, and Compound to earn yield with the purpose of generating $1.5 million annually.
The Ethereum Foundation has begun allocating its holdings to decentralized finance (DeFi) platforms in an effort to generate yield, following growing community concerns over its treasury management.
| Key Takeaways: – The Ethereum Foundation allocates 45,000 ETH to Aave, Spark, and Compound to earn yield with the purpose of generating $1.5 million annually. – The foundation faced backlash for selling ETH instead of utilizing DeFi, making the Ether community call for leadership changes. |
From its multi-signature wallet, the Ethereum Foundation transferred a total of 45,000 ETH to various DeFi lending platforms. The largest portion, 30,800 ETH, was moved to Aave, with 20,800 ETH deposited into its core market and 10,000 ETH allocated to Aave Prime.
An additional 10,000 ETH was placed in Spark, a lending protocol within the MakerDAO ecosystem, while 4,200 ETH was supplied to Compound. These positions are projected to generate approximately $1.5 million annually, based on the prevailing 1.5% yield rate.
The move comes amid heightened criticism from the Ethereum community regarding the foundation’s approach to treasury management.
In January 2025, frustration peaked when the foundation continued to sell ETH despite market conditions. Critics argued that rather than liquidating assets, EF should explore DeFi options to enhance the utility of its holdings while demonstrating confidence in Ethereum’s ecosystem.
Meanwhile, internal tensions have also led to calls for leadership changes, with some community members advocating for the replacement of Ethereum Foundation Executive Director Aya Miyaguchi.
In response to these concerns, co-founder Vitalik Buterin acknowledged the community’s dissatisfaction and pledged significant changes. He hinted at the possibility of staking a portion of the foundation’s assets as an alternative revenue stream.
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