The Ethereum Foundation (EF) announced a decision to convert 1,000 ETH—valued at approximately $4.51 million—into stablecoins. This sale is intended to support the EF's ongoing mission of funding research and development (R&D), grants, and donations.
To execute the sale while minimizing market disturbance, the EF will utilize a Time-Weighted Average Price (TWAP) strategy via the decentralized exchange platform CoWSwap. The Foundation explicitly highlighted this move as a way to "highlight the power of DeFi" within its operations.
The EF did not specify which stablecoins it will acquire. This $4.5 million sale appears separate from an earlier, larger plan announced by the Foundation to convert 10,000 ETH into stablecoins.
The Foundation's treasury policy aims to balance generating yields above standard benchmarks with responsible stewardship of Ethereum, with a strong emphasis on DeFi. By converting a portion of its ETH to fiat-backed stablecoins, the EF seeks to establish consistent funding and protect its budget from crypto market volatility.
Currently, the EF’s operating costs are capped at 15% of its treasury each year, giving it a two-and-a-half-year financial runway. Over the next five years, the EF plans to gradually scale down its expenses to around 5% of the treasury, adopting an endowment-style model to ensure long-term stability and independence.
The stablecoin conversion comes as Ethereum maintains its dominant position, holding 68% of the total value locked (TVL) in the DeFi sector, which surpassed $100 billion by the end of September.
Ethereum co-founder Vitalik Buterin has championed the importance of low-risk DeFi applications, likening their potential to generate predictable income to how Google Search generates revenue for Google. Buterin believes that "low-risk DeFi can and should play a similar role for Ethereum," generating revenue that can help mitigate internal debates while staying true to the project's ethical principles.
October 2025, Cryptoniteuae