ETHZilla Commits 10,600 Etherem Into Liquid Restaking Protocol

ETHZilla, a decentralized finance (DeFi) technology company, has made a new move by investing $47 million, approximately 10,600 ETH, in Puffer’s liquid restaking protocol. According to a press release, this investment aims to improve treasury earnings. It will also strengthen ETHZilla’s role in the growing Ethereum staking ecosystem.

ETHZiila’s Long-Term Strategy

Notably, liquid staking enables ETH holders to earn additional rewards by staking their ETH or liquid staking tokens across several protocols. By partnering with Puffer, ETHZilla is tapping into a model that will increase yields while supporting Ethereum infrastructure and security.

Similarly, the investment also shows ETHZilla’s confidence in Puffer’s security, performance, and long-term potential. Interestingly, this partnership also increases Puffer’s total value locked (TVL). 

Meanwhile, this latest investment follows ETHZilla’s earlier commitment of $100 million to EtherFi earlier in the month. This reflects the company’s ongoing efforts to diversify its staking strategies and utilize its idle ETH reserves.

Understanding Ethereum Treasuries

In August, Vitalik Buterin, co-founder of Ethereum, shared his thoughts on the growing trend of public companies adding ETH to their balance sheets. He affirmed that these firms help grow Ethereum’s ecosystem, but also come with both benefits and risks.

On his podcast, Buterin joked that the U.S. government is his favorite treasury company. He said this because of the times authorities have stepped in to recover stolen Ethereum. While making light of the subject, he stressed that treasury holdings give more options for investors. This is generally a good thing for Ethereum’s adoption.

Treasuries are businesses that choose to hold part of their corporate reserves in any crypto assets, such as Ethereum. This gives investors an indirect way to gain exposure to digital coin without buying the asset directly.

Ethereum Foundation Reveals New Treasury Policy

Meanwhile, the Ethereum Foundation has introduced a more structured and transparent approach to managing its treasury as it prepares for a critical 18-month window for Ethereum’s development. The move comes amid concerns over financial sustainability, community trust, and the network’s lagging performance.

The foundation’s new treasury policy ties its spending and cash reserves directly to its Ether holdings and sales. Furthermore, the EF plans to regularly reassess its annual operating budget as a percentage of total assets while factoring in market volatility and community sentiments.