The Ethereum Foundation (EF) has announced its decision to convert 1,000 Ether (ETH) into stablecoins, a move aimed at funding research, grants, and supporting decentralized finance (DeFi) initiatives as part of its treasury strategy.

This sale, valued at roughly $4.5 million at current market prices, was carried out using CoW Swap, a decentralized trading protocol known for aggregating liquidity from various exchanges, ensuring competitive prices without relying on a centralized intermediary.

Although the foundation did not specify which stablecoins it would obtain in this exchange, this action follows the EF’s earlier announcement in September regarding its intent to convert 10,000 ETH to stablecoins over several weeks. Notably, this recent transaction seems distinct from that plan due to its smaller scale and method of execution via CoW Swap.

Further details from the Ethereum Foundation’s Treasury Policy indicate a commitment to find a balance between securing returns beyond a benchmark rate and fulfilling its stewardship of the Ethereum ecosystem, with a significant focus on DeFi initiatives.

The increased conversion to stablecoins coincides with EF temporarily halting open grant submissions to its Ecosystem Support Program, attributing this pause to a surge in applications, and instead prioritizing funding for the network’s immediate requirements.

In a separate initiative, the foundation underwent a leadership restructuring aimed at bolstering its strategic and operational management. Among these changes, Hsiao-Wei Wang and Tomasz K. Stańczak were appointed as co-executive directors, both having previous roles within EF.

Vitalik Buterin Reaffirms Commitment to DeFi

Since its inception, Ethereum has established itself as the preeminent platform for DeFi applications. Despite the rising competition from other blockchain networks, Ethereum still holds approximately 68% of the total value locked (TVL) in DeFi platforms, according to industry data.

Recently, Vitalik Buterin, a co-founder of Ethereum, reiterated the network’s commitment to decentralized finance. He believes that ’low-risk’ DeFi applications could foster sustainable revenue for the ecosystem, akin to how Google Search supports Google’s business operations.

Buterin stated, “Low-risk DeFi can play a similar role for Ethereum,” emphasizing payment functions and well-understood tools such as synthetic assets and fully collateralized lending.