Ethereum Foundation invested 2,400 ETH into Morpho's yield vault.

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The Ethereum Foundation has deployed 2,400 ETH ( worth approximately 9.6 million USD) along with 6 million USD stablecoin into the Morpho vault – a yield-generating DeFi protocol, according to an announcement on Wednesday. The total treasury value of the fund is currently estimated at around 820 million USD, of which 735 million USD is in ETH.

This move is part of the strategy to expand treasury management towards DeFi, after the Ethereum Foundation committed earlier this year to directly participate in the decentralized financial ecosystem of Ethereum.

The Foundation states that Morpho “is a pioneering permissionless DeFi project, adhering to the principles of free software FLOSS,” with both Morpho Vault v2 and Morpho Blue v1 released under the GPL2.0 open-source license.

Previously, this non-profit organization faced criticism for frequently selling ETH to fund its operations. In response, the Ethereum Foundation announced that it would transfer 50,000 ETH into DeFi protocols such as Compound and Spark to optimize profits.

Morpho – launched in 2022 – is now a decentralized lending protocol chosen by many organizations. Coinbase recently surpassed the milestone of 1 billion USD in on-chain Bitcoin collateralized loans through Morpho just 8 months after its launch.

As of now, Morpho Blue v1 is holding approximately 4.6 billion USD in locked assets (TVL), equivalent to the scale of major platforms such as Compound, Spark, and Aave.

ETH-0.33%
MORPHO-0.27%
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