Aave Proposal Seeks to Convert $3 Million in Treasury
A new proposal in the Aave protocol aims to determine the fate of $3 million in the platform’s treasury. This governance proposal involves a vote by Aave token holders on whether to convert 1,600 Ether, valued at around $3 million, into wrapped staked ether (wstETH) and rocket pool ether (rETH).
Key Points:
- Aave token holders are voting on a proposal to convert $3 million in the protocol’s treasury.
- The conversion would involve swapping 1,600 Ether for wstETH and rETH.
- The proposal has received 252,152 affirmative votes out of a required 320,000.
- Voting ends on July 7th.
- Wrapped Staked Ether (wstETH) and Rocket Pool Ether (rETH) are staking derivatives that offer staking rewards.
If the proposal is approved, the unproductive ETH balance and aWETH (v2 and v3) will be converted into equivalent amounts of wstETH and rETH. This conversion aims to increase yield, as wstETH offers a 3.8% yield and rETH offers a 3.13% yield, compared to Aave v2’s 1.69% yield.
Aave’s native token, AAVE, has experienced a significant recovery in recent weeks, rising by over 22% in the past week alone. It is currently trading at $74.95. Additionally, Aave’s total value locked (TVL) has grown by nearly 60%, reaching $5.98 billion from $3.74 billion in January.
Hot Take: The Aave proposal to convert $3 million in the protocol’s treasury demonstrates the platform’s commitment to optimizing yield for token holders. By swapping unproductive ETH for staking derivatives, Aave aims to provide higher returns and attract more participants. The significant recovery of AAVE’s token price and TVL indicates growing confidence in the protocol’s capabilities and potential for further growth.
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