Aave Token Holders Vote on Proposal Seeking Conversion of 1.6K ETH From Protocol’s Treasury

A new Aave proposal is made to decide the fate of $3 million in the protocol treasury.

Aave token holders will vote on the governance proposal on whether to convert the 1,600 ether, worth about $3 million, in the DeFi protocol vault into wrapped sticky ether (wstETH) and rocket pool ether (rETH).

• the an offer, created on July 3, has received 252,152 upvotes out of the 320,000 required votes at the time of publication. Aave token holders have until July 7 to vote.
• For starters, Staked Ether (WETH) and Rocket Pool Ether (rETH) are examples of staking derivatives that enable market participants to earn staking rewards.

Aave DAO currently holds 1,786.51 awETH (version 2) and 104,548 units of ETH in a pool contract. Return on awETH deposits in Aave v2 earns 1.69%, compared to 3.8% with wstETH and 3.13% with rETH. This AIP converts every balance Unproduced ETH, along with aWETH (vs 2 and 3) result in the same amounts of wstETH and rETH.”

• AAVE’s native token, AAVE, has recovered significantly along with the broader digital asset market over the past three weeks.
• It has risen more than 22% over the past week alone and is currently trading at $74.95.
• According to the latest news data Compiled by DefiLlama, Aave’s TVL value increased nearly 60% from $3.74 billion in January to a press-time value of $5.98 billion.
• While the recovery has been notable, Aave’a TVL has fallen by almost 70% from its ATH of about $20 billion in October 2021.