Ethereum Foundation Directed $6 Million Investment to Morpho

Ethereum Foundation announced today that a total of 2,400 ETH and approximately 6 million dollars worth of stablecoins have been invested in yield-generating Morpho vaults. This strategic move further underscores the Foundation's DeFi (decentralized finance) focused approach to managing its treasury.

The investment amount represents a very small portion of the Ethereum Foundation's total assets of 820 million dollars, while also highlighting Morpho's leadership in permissionless DeFi protocols. The announcement reminded that Morpho's project developments are released under the GPL2.0 open license, emphasizing the project's commitment to free and open-source software (FLOSS) principles.

Earlier this year, following criticism regarding ETH sales, the Ethereum Foundation decided to initiate a DeFi revolution in treasury management. In this context, an initial goal was set to evaluate a total of 50,000 ETH in DeFi protocols. Since then, the Foundation has made millions of dollars in transfers through platforms like Compound and Spark. However, to continue its research and development activities, it occasionally continues to sell ETH on centralized exchanges.

Morpho is a decentralized lending protocol founded in 2022 that continues to grow rapidly on the Ethereum network. The platform has garnered significant interest among institutional investors, successfully providing over 1 billion dollars in Bitcoin-backed loans through Coinbase in just eight months. Currently, Morpho Blue v1 has 4.6 billion dollars worth of assets locked on it. Although this figure represents a small portion of the total lending market on Ethereum, it remains comparable in scale to established competitors like Compound, Spark, and Aave.