The Ethereum Foundation (EF) has announced its decision to convert 1,000 Ether (ETH) into stablecoins, valued at around $4.5 million at current rates, to support research, grants, and decentralized finance (DeFi) funding. This move aligns with their treasury strategy.

The sale was executed using CoW Swap, a decentralized trading protocol that aggregates liquidity from several exchanges to offer competitive pricing without the need for a centralized intermediary.

No details were provided on which stablecoins would be received in exchange for the ETH.

Ethereum Foundation Source: Ethereum Foundation

This transaction is part of a broader initiative, building on EF’s statement from September regarding a future conversion of 10,000 ETH into stablecoins over a few weeks. However, this transaction was smaller and used a decentralized exchange.

The Ethereum Foundation’s Treasury Policy emphasizes a balance between generating returns and enhancing its stewardship within the Ethereum ecosystem, particularly pertaining to DeFi.

The conversion also coincides with a pause in grant submissions to its Ecosystem Support Program due to a surge in applications, focusing instead on the network’s urgent requirements.

In previous restructuring efforts, EF appointed Hsiao-Wei Wang and Tomasz K. Stańczak as co-executive directors, indicating ongoing changes within the foundation’s leadership.

Vitalik Buterin, the co-founder of Ethereum, reiterated the platform’s commitment to DeFi, mentioning that “low-risk” DeFi projects could foster a more sustainable revenue flow for Ethereum, akin to Google’s business dynamics.

Related: Vitalik: An Ethereum Story

Vitalik Buterin’s Insights on DeFi

Vitalik argues that these low-risk applications are essential for sustaining Ethereum’s top position in the market, which currently holds about 68% of the total value locked across DeFi platforms.