The Ethereum (EF) Foundation has today allocated $ 120 million in ETH tokens to the Defi loan protocols: Aave, Spark and Compound.
The foundation was in an prolonged leadership crisis caused by tokens sales to pay the general costs. The EF has shown a desire to respond to the community, but it is still faced with difficult challenges to come.
Banks of the Ethereum Foundation on the loan defined
The Ethereum Foundation (EF) has experienced a leadership crisis in recent times. More specifically, he sold ETH tokens to pay the general costs, and an indignant user base required other solutions.
Today, the EF has found one, transferring tokens worth $ 120 million in some DEFI loan protocols.
“We are grateful for the entire Ethereum security community that has diligently worked to make Ethereum Defi secure and usable! More to come, especially by exploring the clears. If you have suggestions or ideas for future deployment, answer in the comments below and let us know! The Ethereum Foundation claimed on social networks.
The EF has chosen three Loan Defi Protocols for this allowance, putting 10,000 ETH in Spark and 4,200 compound. The rest went to Aave: 10,000 to Aave Prime and 20,800 to Aave Core.
Aave is a popular loan protocol that has been particularly entangled with Ethereum. In the past, it has increased spectacularly in response to ETH price movements.
Using these DEFI loan protocols, the EF will be able to harvest substantial rewards passively. Based on a supply rate of 1.5%, these tokens will earn around 1.5 million dollars per year. The community responded positively to these changes, and Vitalik Buterin warmly welcomed them on social networks.
In some respects, this DEFI turn is an excellent example of the EF really responding to community pressure. However, the foundation is still faced with many other challenges that will really test it.
With regard to specific requests, Buterin was willing to adapt to community pressure, but he resolutely refused the challenges to his leadership.
Meanwhile, the price of Ethereum experienced a continuously continuous decline. The market always shows a strong confidence it will come back: the FNB ETH arrows because the traders buy the decline. However, this will not be enough to create a new bullish momentum in itself.
In the end, these DEFI loan protocols could make a real difference in the EF’s change of fortune. By changing the tactics here, Ethereum leadership has demonstrated a desire to respond to the community.
Between a demonstration of good faith and a strong confidence of investors, another little push could start to reverse the share of performance of the ETH market.
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