Ethereum News: Ethereum Foundation Allocates $120 Million to Support DeFi Loan Protocols

The Ethereum Foundation has announced a significant investment of $120 million into DeFi loan protocols, aiming to address the current leadership crisis and community outrage over the sale of ETH tokens.

Ethereum Foundation Allocates $120 Million to DeFi Loan Protocols

The Ethereum Foundation (EF) has allocated $120 million to DeFi loan protocols, marking a significant step in its efforts to address the current leadership crisis. This move comes in response to community outrage over the sale of ETH tokens to cover overhead costs. The EF has expressed gratitude to the Ethereum security community for their efforts in making Ethereum DeFi secure and usable, indicating a willingness to engage with and respond to community feedback. The allocation of funds to DeFi protocols suggests a shift in strategy for the EF, which may help to alleviate some of the financial pressures it has been facing.

Ethereum Faces Rejection at $2,817 Despite Ethereum Foundation's $120 Million DeFi Move

Ethereum (ETH) experienced a 1% drop on Thursday after facing rejection at the $2,817 support level. This occurred despite the Ethereum Foundation's capital allocation of $120 million to several decentralized finance (DeFi) protocols, which failed to catalyze ETH's price. The crypto market remains subdued by macroeconomic factors.

Ethereum Founder Addresses zkLend Exploit, Highlights Railgun's Privacy Mechanism

On Feb. 12, an attacker exploited a vulnerability at zkLend, a Starknet money-market protocol, stealing 3,600 ETH worth $9.5 million. The hacker manipulated the 'lending_accumulator' by repeatedly depositing, withdrawing wstETH, and transferring assets to Ethereum. However, when attempting to transfer the stolen funds to Railgun, a privacy-focused protocol using zero-knowledge proof, the attacker encountered difficulties. Railgun's Private Proofs of Innocence function prevented illicit funds from entering its privacy pool. The stolen assets remain in the hacker's marked wallet. Ethereum founder Buterin commented on Railgun's response, praising its effectiveness.

Ethereum Price Holds Ground—Are Bulls Preparing for the Next Move?

Ethereum price is moving higher above the $2,650 zone, indicating potential bullish momentum if it clears the $2,750 resistance zone. The cryptocurrency started a fresh increase above the $2,620 resistance level and is currently trading above $2,650 and the 100-hourly Simple Moving Average. A key bullish trend line is forming with support at $2,640 on the hourly chart of ETH/USD. If Ethereum settles above $2,750 and $2,800, it could initiate a significant upward move.