- Aave holders are voting on a governance proposal to transform 1,600 ether (ETH) into wstETH and rETH.
- Aave is presently incomes a return of 1.69% from the ETH it has staked on the Aave v2 platform.
- At press time, all 252,152 votes forged had been in favor of the proposal.
AAVE’s Bull Run has gained momentum as AAVE holders vote on a governance proposal titled “Treasury Managemet – Purchase wstETH & rETH”. The proposal goals to transform 1,600 ETH into equal quantities of wstETH and rETH to be held within the Ethereum Collector contract.
The AAVE token has gained over 26% prior to now seven days and immediately’s rise confirms a long-term uptrend. The token hit a each day excessive of $80.28 immediately, though it’s again all the way down to $76.92 on the time of writing.
Why convert ETH to wstETH and rETH?
The vast majority of the Aave DAO appears to agree as all voters had voted in favor of the proposal on the time of going to press. 252,152 votes have been forged to date out of the 320,000 votes required for the proposal to be carried out. However what is the catch?
Aave is presently the third largest DeFi protocol and has a complete locked worth of $6 billion. The Aave DAO presently holds 1,786.51 awETH and 104.548 ETH within the Collector contract. The yield of the awETH deposit in Aave v2 positive aspects 1.69%, in comparison with the three.8% and three.13% that Aave DAO would earn if it held wstETH and rETH respectively.
If handed, all unperforming ETH steadiness, in addition to aWETH (v2 and v3) can be transformed to the identical quantities of wstETH and rETH for increased staking returns.
In addition to increased yields, wrapped staked ether (wstETH) and rocket pool ether (rETH), that are liquid staking derivatives, will permit Aave to stake tokens for yield whereas sustaining liquidity.
