No more dumping ETH? The Ethereum Foundation borrows $2 million in $GHO from Aave.

Aave founder Stani Kulechov posted through the X platform yesterday (29) that the Ethereum Foundation has borrowed $2 million of GHO stablecoins from Aave, constituting what he calls a "complete DeFi cycle." (Synopsis: Ethereum Foundation Transfers 81,000 ETH to Four DeFi Platforms: Staking and More Deployments to Be Explored Soon) (Background added: ETH saved? The Ethereum Foundation is considering "shifting its focus from research to investment", borrowing from Solana's successful model) Stani Kulechov, founder of Aave, a decentralized lending protocol on Ethereum, posted on social platform X yesterday (29) that the Ethereum Foundation (EF) has now borrowed a further $2 million from Aave after depositing Ether (ETH) with Aave The GHO stablecoin, which constitutes what he calls the "full DeFi cycle." This move shows that the Ethereum Foundation is actively adopting a decentralized finance (DeFi) strategy to optimize its financial management model: The Ethereum Foundation is now borrowing GHO, a decentralized stablecoin backed by Aave. The Ethereum Foundation not only provides ETH to Aave, but also borrows from Aave. Full DeFi loop. The Ethereum Foundation is now borrowing GHO, a decentralized stablecoin backed by Aave. The EF is not only supplying ETH to Aave, but also borrowing from Aave. The full DeFi circle. pic.twitter.com/prJyHi5jsM — Stani.eth (@StaniKulechov) May 29, 2025 Ethereum Foundation's Financial Management Strategy Transformation The Ethereum Foundation has been criticized by the community in the past for frequently selling ETH to cover operating expenses. In January 2025, the Foundation sold more than 4,000 ETH, sparking community discontent that negatively impacted ETH prices and market sentiment. Eric Conner, co-author of the Ethereum Improvement Proposal (EIP-1559), also criticized that the foundation's primary use appears to be "selling ETH," calling the practice "crazy" and urging it to switch to staking or managing funds using DeFi protocols. Anthony Sassano, host of The Daily Gwei, also suggested that foundations should use Aave to stake ETH or borrow stablecoins under ETH instead of selling them outright. In the face of criticism, in February this year, the Ethereum Foundation allocated 45,000 ETH (worth about $120 million at the time) to three major DeFi protocols: Aave, Spark, and Compound, in an attempt to earn passive income by providing liquidity and reduce the need to sell ETH directly. The move responds to community criticism of the Foundation's longstanding sale of ETH to cover operating expenses, signaling a shift to a more sustainable financial strategy. Read more: The Ethereum Foundation allocates 50,000 ETH to participate in DeFi and has executed a test transaction on Aave The Ethereum community has generally commented positively on the Foundation's move to borrow GHO from Aave. Community members believe that this is a step towards smarter financial management for the Foundation, avoiding selling ETH outright, thereby reducing the negative impact on the market: borrowing money without selling ETH is a smart way for the Ethereum Foundation to demonstrate confidence in DeFi with its actions! Foundations need to "keep going" with this strategy, which helps stabilize ETH prices in the long term. Ethereum negative events gradually subsided We know that Ethereum has continued to suffer from community criticism for various reasons, including foundation currency sales, fund management problems, whale sell-offs, and Pectra upgrade errors. However, it seems that these problems have been gradually resolved: the Foundation has shifted to a DeFi financial management strategy, and the Pectra upgrade has been fully completed: Looking ahead, Ethereum may also usher in a number of potential benefits, including: US Ethereum spot ETF open staking function Some companies have followed the micro-strategy and built ETH into their financial reserves, and if this strategy is successful, it may inspire other companies to follow suit in the future Related reports Justin Sun: The Ethereum Foundation let me lead, ETH can break $4500 in a week, sell four major growth strategies Hong Kong Tiger Securities opened Bitcoin, stored value in Ethereum, and met the conditions to send Coinbase shares Ethereum "Fusaka Upgrade" launched at the end of the year: PeerDAS introduced to improve blob availability and reduce L2 and validator costs: 〈No more dumping ETH? Ethereum Foundation borrows $2 million $GHO with Aave" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".