Ethereum Foundation converts 1,000 ETH for stablecoins to fund R&D, grants

The Ethereum Foundation (EF) announced plans to convert 1,000 Ether (ETH) into stablecoins to finance research, grants and donations, aligning with its broader treasury strategy and involvement in funding decentralized finance (DeFi) initiatives

The sale, worth approximately $4.5 million at current prices, was executed via CoW Swap, a decentralized trading protocol that aggregates liquidity across multiple exchanges to offer users competitive prices without relying on a centralized intermediary.

Neither the foundation’s announcement nor its treasury policy specified which stablecoins it would receive in exchange for the ETH.

Source: Ethereum FoundationThis latest conversion follows EF’s earlier disclosure in September that it planned to convert 10,000 ETH into stablecoins over several weeks. However, Friday’s transaction appears to be separate from that initiative, given its smaller scale and use of CoW Swap rather than a centralized exchange.

According to the Ethereum Foundation Treasury Policy, EF seeks to “balance between seeking returns above a benchmark rate and extending EF’s role as a steward of the Ethereum ecosystem, with a particular focus on DeFi.”

The increased use of stablecoins also comes as EF temporarily paused open grant submissions to its Ecosystem Support Program, citing an influx of applications. The foundation said it will instead prioritize funding for the network’s most pressing needs.

In April, EF also announced a leadership restructuring to improve strategic and operational management. The foundation appointed Hsiao-Wei Wang and Tomasz K. Stańczak as co-executive directors, both of whom previously held roles within EF. In June, the foundation laid off staff and restructured its core development team.

Related: ‘Vitalik: An Ethereum Story’ is less about crypto and more about being human

Vitalik Buterin doubles down on DeFi

Since its launch, Ethereum has remained the leading platform for DeFi applications. Despite growing competition from other blockchain networks, Ethereum still accounts for roughly 68% of total value locked (TVL) across DeFi platforms, according to industry data.

While Ethereum’s dominance in DeFi has declined since 2021, it remains the leading platform in the sector. Source: DefiLlamaEthereum co-founder Vitalik Buterin recently reiterated the network’s focus on decentralized finance, arguing that “low-risk” DeFi applications could help create more sustainable revenue for the ecosystem, similar to how Google Search underpins Google’s business model.

“Low-risk DeFi can play a similar role for Ethereum,” Buterin wrote, pointing to “the basic functions of payments and savings, and well-understood tools like synthetic assets and fully collateralized lending.”

Magazine: ETH co-founder moves $6M of ETH, crypto index ETF expands: Hodler’s Digest, Sept. 21 – 27

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