The Ethereum Foundation has allocated $165.3 million, approximately 50,000 ether (ETH), to participate in decentralized finance (DeFi). This initiative aims to grow the foundation's treasury, which has declined by 39% over the past three years while holding much of its assets in ether. A multisig wallet will be established through Safe for managing this new allocation. An initial transaction was sent to the lending protocol Aave, showcasing its entry into the DeFi space. Ethereum co-founder Vitalik Buterin mentioned that the foundation has so far avoided staking its ETH due to regulatory concerns and aims for 3.31% yield on its holdings if it chooses to stake. The foundation is currently undergoing leadership changes to enhance technical expertise and support for app builders, without aiming for a centralization of its operations or an ideological shift. These developments signal a proactive approach to safeguarding and optimizing the foundation's financial strategy.

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