The Ethereum Foundation mortgaged ETH on Aave to borrow $2 million GHO.

Gate News bot message, Ethereum Foundation (EF) used wrapped ETH (wETH) as collateral on the Aave protocol to borrow $2 million worth of GHO stablecoin.

Marc Zeller, the founder of the Aavechan Initiative, shared this development on May 29, pointing out that the foundation's use of GHO aligns with Aave's core value proposition, allowing ETH holders to unlock liquidity without having to liquidate.

Aave protocol founder Stani Kulechov also expressed the same viewpoint. He emphasized that the Ethereum Foundation is offering ETH on Aave for lending and borrowing, stating that this reflects the complete utility cycle of DeFi.

According to data from DeFillama, Aave is the dominant DeFi lending protocol on Ethereum, with a total locked value of (TVL) exceeding 4.3 billion USD. GHO is Aave's native over-collateralized stablecoin, with a current circulation of 249 million USD. Blockchain analytics company Token Terminal believes that active lending and GHO issuance are key indicators directly related to Aave DAO's revenue-generating capacity.

Earlier this year, the Ethereum Foundation deployed 50,000 ETH across multiple DeFi platforms. This included a deposit of 30,800 ETH to Aave in February, distributed between its core market and the Aave Prime platform. Additionally, the foundation allocated 10,000 ETH to MakerDAO's Spark platform and 4,200 ETH to the Compound platform.