- Ethereum Foundation converts 1,000 ETH via CoWSwap to fund research and ecosystem grants.
- Leadership restructuring and paused grants mark EF’s internal shift toward efficient operations.
- Ethereum retains 68% of DeFi market share, exceeding $100B in total value locked.
The Ethereum Foundation (EF) has disclosed plans to convert 1,000 ETH, valued at approximately $4.51 million, into stablecoins. The proceeds will be directed toward research funding, grants, and ecosystem donations. The conversion will be completed through the decentralized exchange CoWSwap, utilizing a Time-Weighted Average Price (TWAP) mechanism to prevent market disruption and support the foundation’s DeFi-focused operations.
According to the announcement, the sale aligns with EF’s long-term strategy to strike a balance between treasury stability and participation in decentralized finance. While the foundation did not disclose the specific stablecoins to be received, it noted that the transaction would highlight DeFi’s role in institutional fund management.
The sale follows an earlier internal proposal to convert 10,000 ETH in September, revealing a more gradual approach to diversifying the foundation’s holdings. The new transaction will occur through CoWSwap, confirming EF’s intent to favor decentralized liquidity solutions over centralized exchanges.
EF affirms that its treasury policy focuses on protecting financial reserves from market volatility while ensuring steady support for ongoing ecosystem initiatives. The foundation plans to utilize the stablecoin reserves to support research programs and grants, thereby mitigating its exposure to fluctuations in Ethereum’s price.
Related: The Ethereum Foundation Is Rebuilding Its Core with ZK-Proof Technology
Operational Adjustments and Leadership Changes
The stablecoin sale coincides with internal restructuring within the Ethereum Foundation. In April, EF appointed Hsiao-Wei Wang and Tomasz K. Stańczak as co-executive directors, marking a shift toward a dual-leadership framework. In June, the foundation further reorganized its staff and development teams to enhance operational efficiency and funding allocation.
EF also temporarily paused its open grant submission process under the Ecosystem Support Program to handle increased demand. The pause would allow the team to prioritize projects that have an immediate impact on Ethereum’s network development. The program is expected to reopen after internal reviews and funding assessments.
Related: SharpLink Gaming Acquires 10,000 ETH Directly from the Ethereum Foundation
Ethereum’s DeFi Position
Ethereum continues to dominate decentralized finance, accounting for nearly 68% of the sector’s total value locked (TVL). Data from late September placed Ethereum’s DeFi TVL above $100 billion, its highest level since early 2022.
Moreover, Co-founder Vitalik Buterin recently highlighted the importance of “low-risk” DeFi applications as a reliable source of income for the ecosystem. He compared their future role to that of Google Search, arguing that sustainable revenue models could strengthen Ethereum’s financial independence and long-term stability.
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Source: https://coinedition.com/ethereum-foundation-converts-4-5m-in-eth-to-stablecoins-via-cowswap/
