ethereum foundation defi strategy remains in focus as the organization converted 1,000 ETH into stablecoins to support ongoing operations. The swap was valued at roughly $4.5 million at execution. Importantly, the transaction used Cowswap’s Time-Weighted Average Price feature to reduce market impact. This choice underscores DeFi’s practical utility for treasury execution.
Additionally, the conversion was part of a broader plan. In September 2025, the Ethereum Foundation disclosed an intent to convert 10,000 ETH into stablecoins over several weeks. The plan aligns with its updated June 2025 treasury policy. That policy emphasizes balancing returns with stewardship of the Ethereum ecosystem. It also highlights a focus on DeFi tooling and practices.
DeFi mechanics in the ethereum foundation defi strategy
Therefore, using a TWAP mechanism on Cowswap fits the stated aim of minimizing slippage. It also signals operational discipline for large orders. Moreover, programmatic execution can handle sizable treasury actions without undue volatility. This structure supports predictable liquidity.
Meanwhile, the Foundation expanded its on-chain allocations. On October 15, 2025, it deployed 2,400 ETH—about $9.6 million—into a yield-bearing Morpho vault. It also added approximately $6 million in stablecoins to the same strategy. By contrast, this step shows active deployment into DeFi yield rather than merely holding stablecoins.
Context and ongoing allocations
As a result, the latest 1,000 ETH conversion appears consistent with the multi-week 10,000 ETH plan. Notably, the June 2025 policy stressed balancing risk, return, and ecosystem stewardship. In addition, the DeFi focus provides context for choosing Cowswap’s TWAP. It also supports selecting Morpho for yield.
According to the source, these actions are intended to fund research and development and grants. However, no further operational details were provided beyond amounts and timing. The execution choices were disclosed alongside the conversions. The approach highlights measured treasury management.
- 1,000 ETH converted via Cowswap TWAP (~$4.5M).
- Plan to convert 10,000 ETH over several weeks.
- 2,400 ETH and ~$6M stablecoins deposited into a Morpho vault.
Therefore, the sequence suggests a structured approach to liquidity and execution. It also reflects attention to minimizing market impact during conversions. Furthermore, the allocations aim to support ecosystem initiatives. Overall, the program shows consistent DeFi tooling across operations.
