Ethereum DeFi Giants Form Advocacy Alliance to Shape Global Policy
## Executive Summary
Seven prominent Ethereum DeFi protocols, including **Aave Labs**, **Curve**, **Lido Labs Foundation**, and **Uniswap Foundation**, have launched the **Ethereum Protocol Advocacy Alliance (EPAA)** to coordinate global policy efforts and educate legislators on decentralized finance, representing over **$100 billion** in secured assets.
## The Event in Detail
The **Ethereum Protocol Advocacy Alliance (EPAA)** has been officially formed by seven leading Ethereum protocol development teams: **Aave Labs**, **Aragon**, **Curve**, **Lido Labs Foundation**, **Spark Foundation**, **The Graph Foundation**, and **Uniswap Foundation**. This coalition aims to coordinate efforts on global policy issues pertinent to blockchain networks and Ethereum-based software. These protocols collectively secure more than **$100 billion** worth of assets across public blockchains through open, non-custodial systems that operate without intermediaries.
The EPAA's shared policy framework is structured around four key priorities:
* **Protecting Protocol Neutrality:** Ensuring the protocol layer remains neutral and that code itself is not subject to regulation.
* **Advancing On-Chain Transparency:** Promoting real-time, verifiable on-chain data as a source of compliance.
* **Preserving Innovation Flexibility:** Avoiding rigid or overbroad standards that could stifle innovation.
* **Upholding Global Access:** Maintaining permissionless, decentralized infrastructure access globally.
## Business Strategy & Market Positioning
The formation of the EPAA signifies a strategic shift by decentralized finance entities to proactively engage with policymakers. Instead of traditional lobbying, the alliance intends to contribute technical expertise to policymakers, advocacy partners, and public consultations. They will produce pragmatic resources explaining how on-chain systems mitigate risk and embed accountability within their codebases. This approach aims to strengthen the collective voice of builders in policy discussions, reinforcing the understanding that **Ethereum** ecosystem stakeholders play a critical role in educating legislators.
The EPAA will collaborate with established advocacy organizations such as the **DeFi Education Fund**, the **Decentralization Research Center**, and the **European Crypto Initiative**. The **Ethereum Foundation** has publicly welcomed the creation and work of the EPAA, emphasizing the importance of community-led coordination on advocacy efforts. This strategy seeks to ensure that laws accurately reflect the operational realities of on-chain systems, rather than potentially misinformed perceptions, thereby balancing the influence of centralized crypto entities.
## Market Implications
The establishment of the EPAA carries significant implications for the regulatory landscape of the **DeFi** sector and the broader **Web3** ecosystem. By presenting a unified front and providing technical guidance, the alliance could foster the development of more favorable or clearly defined regulations for decentralized protocols. This proactive engagement may reduce regulatory uncertainty, potentially encouraging further institutional adoption and innovation within the **Ethereum** ecosystem.
The substantial assets secured by EPAA members—over **$100 billion** in total, with **Ethereum's Total Value Locked (TVL)** standing at **$78.6 billion** and **Aave** alone holding over **$39 billion** in TVL—underscore the economic significance of the protocols involved. A more stable and predictable regulatory environment could enhance investor confidence and facilitate continued growth in decentralized finance, reinforcing **Ethereum's** position as a foundational layer for digital assets.
## Broader Context
The EPAA represents a pivotal moment for the decentralized sector, marking a concerted effort by protocol teams to actively shape their regulatory future. This initiative moves beyond passive observation of policy developments, adopting a proactive stance to ensure that the unique benefits and operational mechanisms of decentralized infrastructure are understood and accommodated by global regulators. This coordinated advocacy reflects a maturing industry increasingly focused on long-term sustainability and mainstream integration, striving to protect the core tenets of transparency, neutrality, and permissionless access that define the **Web3** space.
