Ethereum Foundation Launches New Cluster Focused on Privacy and DeFi Growth

TLDR

• Ethereum Foundation forms a new DeFi team to support privacy and protocol projects.
• Charles St. Louis joins as DeFi protocol expert and Ivan as coordinator.
• Team will work on user-controlled AI, ZK credit lending, and on-chain futures.
• Ethereum plans FOCIL upgrade to improve censorship resistance with random validators.

The Ethereum Foundation has announced a new DeFi team under its App Relations division to support the development of privacy-focused protocols. The team aims to advance projects that align with the DeFipunk philosophy, which emphasizes permissionless, censorship-resistant, and self-custody principles.

According to ChainCatcher, Charles St. Louis, former CEO of DELV and ex-MakerDAO governance architect, has been appointed as the DeFi protocol expert. Ivan, co-founder of Gearbox Protocol, will serve as the DeFi coordinator. The team plans to provide research support, networking opportunities, and showcase platforms for projects within the ecosystem.

Focus on Privacy and Open-Source Principles

The new cluster highlights Ethereum’s commitment to privacy-first solutions. Projects within the cluster will prioritize open-source development, user self-custody, and decentralized governance.

The DeFi team will also collaborate with the Ethereum Privacy Cluster, reorganized last year, to explore advanced areas such as user-controlled AI, high-throughput on-chain futures, futarchy DAOs, and ZK private credit lending. The aim is to create protocols that maintain strong privacy while remaining decentralized.

Upcoming FOCIL Protocol Upgrade

Ethereum developers have announced plans for the FOCIL protocol upgrade, expected in the second half of 2026. The upgrade is designed to strengthen censorship resistance by requiring blocks to include validated transactions from randomly chosen validators.

This approach aims to prevent any single validator or external authority from censoring transactions. The upgrade supports Ethereum’s core goals of decentralization and permissionless access while presenting potential compliance challenges with sanctioned transactions.

User Experience Enhancements and Layer 2 Vision

Ethereum co-founder Vitalik Buterin has proposed new features to improve wallet and smart contract security. He suggested a “transaction simulation” feature where users can preview actions before confirming or canceling them.

Buterin also recommended implementing spending limits and multi-signature authorizations. He noted that perfect security is not achievable but emphasized multiple verification methods to protect users. Additionally, Buterin expressed concerns over the fragmented Layer 2 ecosystem. He envisions “native rollups” that integrate more closely with the Ethereum mainnet to enhance scalability and efficiency.

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