- Aave holders vote on a administration proposal to transform 1600 Ether (ETH) to wstETH and rETH.
- Presently, Aave earns a revenue of 1.69% on the ETH it has invested on the Aave v2 platform.
- At press time, all 252,152 votes have been in favor of the proposal.
The AAVE Bull Run has gained momentum as AAVE holders vote on a governance proposal titled “Treasury Administration – Purchase wstETH and rETH”. The proposal seeks to transform 1,600 ETH into equal quantities of wstETH and rETH, which will likely be held in an Ethereum collector contract.
The AAVE token has gained greater than 26% up to now seven days, and at present’s enhance confirms a long-term uptrend. The token hit an intraday excessive of $80.28 at present, though it has fallen to $76.92 on the time of writing.
Why convert ETH to wstETH and rETH?
A lot of the Aave DAO appears to agree, as all voters have voted in favor of the proposal at press time. Up to now, 252,152 votes have been solid out of the 320,000 votes wanted to cross the proposal. However what’s the catch?
Aave is at present the third largest DeFi protocol with a complete worth of $6 billion locked up. Aave DAO at present has 1,786.51 awETH and 104,548 ETH beneath the collector contract. Yield on awETH deposits Aave v2 earns 1.69% in comparison with 3.8% and three.13% that Aave DAO would earn if it owned wstETH and rETH respectively.
If your complete non-productive ETH steadiness is maintained, it will likely be transformed to the identical quantities of wstETH and rETH together with aWETH (v2 and v3) for greater income.
Along with greater yields, Packed Ether (wstETH) and Rocket Pool Ether (rETH), that are derivatives of liquid capital, will enable Aave to speculate tokens for yield whereas sustaining liquidity.
