Ethereum Foundation Is Now Earning from DeFi—But at What Risk?

The numbers tell a clear story: Aave Core leads with 20,800 ETH ($55M), followed by Aave Prime and Spark at 10,000 ETH ($26M) each, while Compound brings up the rear with 4,200 ETH ($11.2M). With Spark operating within the Sky ecosystem (formerly MakerDAO) and a combined TVL surpassing $25 billion, this is no small experiment.

More than just an investment, this decision represents a paradigm shift—the Ethereum Foundation is no longer just selling ETH to sustain development. With an expected $1.5 million annual yield (1.5%), it’s now actively using DeFi to expand its treasury while reinforcing the protocols that power Ethereum itself.

Risk is an inevitable part of crypto investing, but diversification is the best defense. By spreading funds across multiple DeFi protocols, the foundation reduces systemic risk, protecting itself from potential exploits and unforeseen vulnerabilities. Storing assets in a multi-signature wallet further fortifies security and ensures decentralized governance over investment decisions.

Сheck this out:JPMorgan—Ethereum’s Challenges Are Far from Over

This move shows how even major crypto players are learning to make their reserves work for them. However, such an approach demands rigorous risk assessment—from technical vulnerabilities to market shifts—to avoid major losses due to asset depreciation or protocol instability.