- Aave token holders are participating in a governance vote to potentially convert $3 million worth of ether (ETH) into wrapped staked ether (wstETH) and rocket pool ether (rETH).
- The Aave token has experienced a surge of 7.24% within the last 24 hours and the proposal has garnered 252,000 votes, with the threshold for approval set at 320,000.
Token holders of Aave, a decentralized finance (DeFi) powerhouse, are in the midst of a governance vote that could lead to the transformation of 1,600 ether (ETH), worth approximately $3 million in the protocol’s treasury, into wrapped staked ether (wstETH) and rocket pool ether (rETH). Both of these are liquid staking derivatives that allow investors to stake tokens, earn yield, and maintain liquidity.
Higher Yield Potential with wstETH and rETH
Aave, currently ranking as the third-largest DeFi protocol with a total locked value of $6 billion, earns a modest yield of 1.69% from the 1,600 ether via direct staking on the Aave v2 platform. However, a holder proposing the conversion asserts that the yield could see a considerable bump—3.8% with wstETH staking and 3.13% with rETH staking.
In recent market performance, the Aave token has seen a promising uptick of 7.24% over the past 24 hours, making for a 29% rise over the previous week, according to data from CoinMarketCap.
To date, the proposal has received 252,000 votes, approaching the necessary 320,000 for enactment. The voting period is set to conclude this Friday. Thus far, all votes have been in favor of the proposed conversion.
Of note, a substantial portion of the votes has been cast by a single wallet, “aavechan.eth”, which is staking $397,000 worth of Aave (stAave) tokens according to etherscan. If the proposal goes through, it could signify a significant step in the protocol’s journey towards optimizing its treasury management and yield potential.