An Ethereum developer rejected hypothesis that the Ethereum Foundation (EF) was behind a latest deposit of greater than 30,000 Ether into the decentralized finance (DeFi) protocol Sky, previously referred to as MakerDAO.

On March 10, a pockets deal with deposited 30,098 Ether (ETH), value about $56 million, into Sky. Crypto intelligence platform Arkham labeled the deal with “Ethereum Foundation?,” elevating hypothesis that the EF could have moved funds into the lending protocol — a technique really helpful by the group — as an alternative of straight promoting ETH to fund its operations. 

However, group members shortly dismissed the claims, clarifying that the pockets in query doesn’t belong to the Ethereum Foundation. Eric Conner, the co-author of Ethereum Improvement Proposal (EIP-1559), called a Wu Blockchain report “completely fake,” implying that the deal with doesn’t belong to the EF. 

Anthony Sassano, host of The Daily Gwei, additionally cited the report, saying that the pockets doesn’t belong to the EF. 

Ethereum pockets seemingly from an early investor

Wu Blockchain later clarified that whereas the account was suspected of belonging to the Ethereum Foundation, transaction historical past recommended it was extra seemingly related to an early Ethereum investor.

The deal with acquired a 4 million Dai (DAI) switch from the EF ETH Sale in May 2022, and preliminary ETH funding was traced again to a pockets referred to as jonny.eth. 

The deal with deposited the $56 million into the Sky vault to keep away from liquidation as ETH costs tumbled. On March 10, ETH dropped from a excessive of $2,138 to $1,813, a 15% decline.

The transfer allowed the pockets to keep away from liquidation, decreasing its liquidation value to $1,127.14, 40.19% beneath ETH’s value of $1,896 on the time of writing.

Related: Ethereum Foundation forms external council to uphold core blockchain values

Ethereum Foundation deployed $120 million into DeFi protocols

While the latest deposit into Sky was not linked to the Ethereum Foundation, the EF has confronted criticism previously for promoting ETH for stablecoins to fund crew salaries and operations. In January, community members suggested that the inspiration might as an alternative borrow stablecoins towards its ETH holdings relatively than promote the property.

At the time, Sassano stated that as an alternative of swapping ETH for stablecoins, the inspiration ought to think about using Aave to borrow stablecoins towards ETH. Sky permits customers to do one thing related. By depositing ETH, customers can borrow DAI. 

On Feb. 13, the EF listened to the group and deployed 45,000 ETH, about $120 million on the time, to DeFi protocols Aave, Spark and Compound.

Community members celebrated the transfer, with Aave founder and CEO Stani Kulechov saying, “DeFi will win.” The EF additionally stated there’s “more to come,” suggesting this isn’t their final foray into DeFi. 

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