The Ethereum Foundation has deposited another 3,400 $ETH — worth roughly $7.5 million at today’s prices, near $2,220 — into DeFi lending protocol Morpho, with 1,000 $ETH allocated specifically to Morpho Vaults V2, according to a X post from the EF today, March 18.
The move follows an initial deployment in October 2025, when the EF put 2,400 $ETH (~$5.3 million) and approximately $6 million in stablecoins into the protocol — bringing the Foundation’s total Morpho commitment to just under $19 million to date.
According to the post, the DeFi deployments are a direct expression of the EF’s refreshed treasury policy, first unveiled in June 2025, which codified a new “Defipunk” framework to guide on-chain capital allocation.
As The Defiant reported at the time, the policy signaled that DeFi was no longer a sideshow for the Foundation — it was putting its $ETH where its mouth is, prioritizing permissionless, immutable, audited protocols aligned with cypherpunk values over passive $ETH sales to cover operations.
The EF also elaborated on why it chose to deploy in Morpho, and in particular praised Morpho Vaults V2, which launched in September. The Foundation cited the product’s GPL-2.0 open-source license — a deliberate choice, it noted, that makes the codebase permanently able to be audited and forked.
Crucially, Vaults V2’s core contracts are immutable: no admin keys, no upgrade mechanisms, no emergency switches. “The true cypherpunk infrastructure doesn’t ask you to trust its builders, and it removes the need entirely,” the Foundation wrote in its X announcement.
According to DefiLlama, Morpho is currently the second-largest DeFi lending protocol behind Aave, with a total total value locked (TVL) of over $6.9 billion. The protocol has attracted significant institutional interest in recent months, including a deal for Apollo Global Management — which manages nearly $940 billion in assets — to acquire up to 9% of Morpho’s 1 billion total token supply over four years.
The EF framed the Morpho allocation as a question of ecosystem direction:
“What kind of DeFi ecosystem is Ethereum aiming to support, and how should it weigh short-term performance against long-term resilience and openness? Choices like licensing and architecture may seem small, but they shape which of these paths remain viable over time.”
The treasury move comes amid a busy stretch for the Foundation. Just last week, the EF published its 38-page EF Mandate, which sparked debate in the community over whether the Foundation risks taking a backseat at a critical moment for institutional adoption.
In February the EF also pledged to deepen its support for privacy-first, permissionless DeFi, forming a dedicated internal unit to support builders adhering to those principles. The Morpho deposit suggests the commitment is more than rhetorical.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
