AAVE Token Jumps 26% as Holders Vote to Convert 1,600ETH
• AAVE holders are voting on a proposal to convert 1,600 ETH to wstETH and rETH for higher staking yields.
• All the 252,152 votes cast were in favor of the proposal at press time.
• If passed, Aave’s awETH deposit yield will increase from 1.69% to 3.8% and 3.13%.
AAVE Holders Voting on Proposal
AAVE holders are voting on a governance proposal titled “Treasury Management – Acquire wstETH & rETH” which seeks to convert 1,600 ETH to equal amounts of wstETH and rETH to be held in the Ethereum Collector Contract. At press time all the 252,152 votes cast were in favor of the proposal.
Proposal Impact on Yields
The current Aave DAO holds 1,786.51 awETH and 104.548 ETH in the Collector Contract with a yield of 1.69%. The proposed conversion would result in higher yields as Aave DAO would earn 3.8% and 3.13% if it held wstETH and rETH respectively instead of awETH deposited in Aave v2 platform currently earning only 1.69%. The wrapped staked ether (wstETH) and rocket pool ether (rETH) derivatives also allow Aave to retain liquidity while still earning a yield from staking tokens.
AAVE Token Price Surge
The AAVE token has gained momentum as its price surged 26% over the last seven days with a daily high of $80.28 today although it had pulled back to $76.92 at the time of writing confirming a long-term bullish trend for AAVE token holders .
The majority of Aave DAO seems favorable towards this proposal seeing that all voters have voted ‘yes’ at press time but 320,000 votes are required for this proposal to be actioned upon successfully .
Aave is currently third largest DeFi protocol with total value locked amounting up to $6 billion which is likely set grow even more once this proposal gets approved by its stakeholders as they look forward towards higher returns from their investments via increased yield rates from wstETh and rETh tokens