The discussion around decentralized finance and its non-use by the Ethereum Foundation (EF) and its founders is a hot topic recently. What does it mean when the EF and the founder sell a portion of his stake (for bio-defense weapons) instead of using it to take loans against it? This article delves into the intricate relationship between DeFi and Ethereum, and sheds light on how things could be done differently.
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How Is the Value of Ethereum Perceived in Relation to DeFi?
First of all, according to some, DeFi is built upon the value of ETH, and ETH is valuable because of the labor value of blockspace. They both use and build each other, similarly to comparing the value of roads to their use in transportation and economic activities. Suggesting that Ethereum’s value is similarly derived from the widespread use of financial products and the economic ecosystem built around it. They both need each other or build on top of one another.
Vitalik Buterin’s Recent Transfers and What this Means?
Debates were sparked when the Ethereum Foundation and most importantly, founder Vitalik Buterin, made some sales, all recorded on-chain.
According to recent blockchain data, the wallet identified as “0xD04d,” which is speculated to be related to Vitalik Buterin, transferred a substantial amount of 1,300 Ethereum (worth approximately $3.17 million) to another wallet labeled “0x5567.”
Regarding when he sells or why, it is his own responsibility, but you could ask yourself – why doesn’t he use DeFi as he expressed a desire to in the past?
Could the Ethereum Foundation leverage DeFi to use its ETH holdings to fund operations while retaining its ETH assets?
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