Ethereum Foundation deepens DeFi strategy with Morpho
7 Investments Ethereum Foundation allocated 3,400 ETH ($7.5M) to Morpho, with 1,000 ETH in Morpho Vaults V2, strengthening its DeFi treasury approach and reducing ETH sales for funding.
The Ethereum Foundation has advanced its treasury management by deploying an additional 3,400 ETH—valued at roughly $7.5–$7.6 million—into Morpho, a decentralized finance (DeFi) lending protocol. Notably, 1,000 ETH from this allocation was directed to Morpho Vaults V2, signaling the Foundation’s confidence in the protocol’s latest infrastructure for enhanced yield and capital efficiency. This move follows a previous deployment in October 2025, when the Foundation allocated 2,400 ETH and $6 million in stablecoins to Morpho Vaults. The updated strategy marks a shift from selling ETH to fund operations, focusing instead on actively managing its treasury through DeFi protocols. The Foundation’s new treasury policy, introduced in 2025, prioritizes support for open-source, permissionless, and immutable DeFi platforms, with Morpho Vaults V2 highlighted for its GPL-2.0 license and immutable contracts. The Foundation’s total commitment to Morpho now nears $19 million, reflecting a broader trend among major crypto treasuries to favor on-chain yield protocols over traditional finance.
