The Ethereum Foundation (EF) is making a big change in how it manages its money. Starting in 2025, EF plans to use DeFi (Decentralized Finance) tools to manage its treasury more efficiently. This move shows that Ethereum is serious about trusting and supporting DeFi — the very technology built on its own network.
What’s Happening?
EF is restructuring its treasury — basically, how it holds and uses its funds. Instead of just holding crypto like ETH or cash, it will now use DeFi protocols to earn yields (like interest) and improve how liquid its assets are (how easily they can be used or moved).
Why the Change?
EF's Director, Hsiao-Wei Wang, said 2025 and 2026 will be key years for Ethereum. So they want their funds to be managed better and more flexibly. By putting some of their assets into trusted DeFi platforms, they hope to:
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Earn better returns on their funds
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Support the DeFi ecosystem
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Help Ethereum grow stronger
What Do Others Think?
DeFi leaders like Stani Kulechov, the founder of Aave, are excited. He said that this could help DeFi protocols become more stable and help more people take part in their governance. Analysts also believe this move could push more institutions to start using DeFi.
Learning from the Past
This isn’t EF’s first time using DeFi. They've done it before and learned important lessons about safety, risk, and transparency. This time, they’re making sure the risks are carefully managed while still taking advantage of DeFi’s growth.
In Simple Terms:
The Ethereum Foundation is updating the way it handles its money. It wants to use DeFi tools to grow its funds, stay flexible, and help the Ethereum ecosystem in 2025 and beyond. This move could inspire other projects to follow and make DeFi even more trusted by big players.
Disclaimer: This article is only for
information and not financial advice. The opinions shared here may be the
writer’s personal views. Please do your own research before making any
investment choices. We are not responsible for any money you may lose.
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