DeFi

Supporting Ethereum's DeFi Ecosystem

Tuesday. January 21 at 12:00 PM

1 min. read

The Ethereum Foundation has announced plans to allocate 50,000 Ether, valued at approximately $165 million, to bolster Ethereum's decentralized finance ecosystem. Vitalik Buterin, the co-founder of Ethereum, revealed on Jan. 20 that the foundation will undergo structural changes to better assist application developers and enhance transparency within the community. The funds will be stored in a secure multisig wallet on Safe, with a test transaction already completed on the Aave lending protocol. Despite the delay in setting up the wallet, the foundation aims to benefit from the DeFi ecosystem to replenish its treasury, which has decreased by 56% since January 2020. Some critics, like Kain Warwick, have questioned the foundation's commitment to DeFi, while others have raised concerns about the selling pressure on Ether. However, Buterin clarified that the foundation's focus remains on creating value rather than profit, distancing itself from lobbying efforts and emphasizing neutrality.

More news 🗞️

Supporting Ethereum's DeFi Ecosystem

Tuesday. January 21 at 12:00 PM

DeFi

Exploring Alternatives to Selling ETH: Ethereum Foundation's Staking Concerns

Tuesday. January 21 at 5:00 AM

Members of the Ethereum community are urging the Ethereum Foundation to stake its Ether for interest instead of selling tokens to cover expenses. Vitalik Buterin, the co-founder, mentioned the foundation is looking into ways to address staking concerns. The organization currently uses the Ethereum mainnet to swap Ether for stablecoins and make payments. Suggestions were made for the foundation to stake a portion of their holdings and sell the rewards or use Aave to borrow stablecoins against ETH. However, Eric Conner criticized the foundation's practice of selling ETH, proposing staking and utilizing DeFi for budget coverage. Buterin expressed reservations about staking due to regulatory risks and potential involvement in contentious hard forks. Despite concerns, Buterin mentioned exploring ways to mitigate risks. The community continues to discuss alternatives to selling ETH for funding development.

DeFi

Binance Adapts to EU Regulations in Poland

Saturday. January 18 at 1:00 PM

Binance has adjusted its cryptocurrency deposit and withdrawal processes in Poland to comply with the EU's Markets in Crypto-Assets Regulation (MiCA). Effective Jan. 20, users must provide additional information for transactions exceeding 1,000 euros. Deposits require sender details like full name, country, and exchange name, while withdrawals need beneficiary information. The updates only impact crypto transfers, with potential delays or returns for incomplete data. MiCA, in force since Dec. 30, 2024, sets standards for crypto services, enhances consumer safeguards, and tackles AML issues. It mandates detailed sender and recipient data for transfers over 1,000 euros. Poland recognizes cryptocurrency activities like mining and trading, taxed at 19%. The country is also developing a regulatory framework for VASPs to align with MiCA. Presidential candidate Sławomir Mentzen aims to make Poland a crypto-friendly hub if elected in 2025, amid the region's growing DeFi prominence.

DeFi

KernelDAO Launches $40 Million Ecosystem Fund to Boost DeFi Development on BNB Chain

Saturday. January 18 at 12:00 PM

KernelDAO, a prominent restaking protocol, has introduced a $40 million Ecosystem Fund to expedite platform development and enhance its presence in the BNB Chain ecosystem. This move underscores KernelDAO's commitment to enhancing decentralized finance (DeFi) and bolstering security through its restaking solutions. The newly established Ecosystem Fund is aimed at supporting developers working on KernelDAO's restaking infrastructure, following the platform's milestone of managing $2 billion in assets across various chains. With support from leading venture capital firms like Laser Digital, SCB Limited, Hypersphere Ventures, and Cypher Capital, KernelDAO is poised to become a key player in the restaking landscape on the BNB Chain. In addition to financial backing, KernelDAO is allocating 5% of its token supply for ecosystem development grants to drive growth and solidify its position in the industry. The $40 million fund signifies a significant advancement for KernelDAO, showcasing its expanding influence in the blockchain sector.

DeFi