A new Aave proposal took place to decide the fate of $3 million in the protocol’s treasury.
The Voting Process
The holders of the Aave tokens will be voting on a governance proposal on whether 1,600 Ether, worth around $3 million, in the DeFi protocol treasury will be converted to wrapped staked ether (wstETH) and rocket pool ether (rETH).
The proposal, created on July 3rd, has received 252,152 affirmative votes out of a required 320,000 at the time of publication. Aave token holders have until July 7th to vote.
About wrapped Staked Ether (WETH) and Rocket Pool Ether (rETH)
For the uninitiated, wrapped 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 (v2) and 104.548 units of ETH in the Collector Contract. The awETH deposit yield in Aave v2 earns 1.69%, relative to 3.8% with wstETH and 3.13% with rETH. This AIP converts all the unproductive ETH balance, along with aWETH (v2 and v3) into the same amounts of wstETH and rETH.”
The Rise of Aave
Aave’s native token, AAVE, has recovered significantly alongside the broader digital assets market over the past three weeks. It was up by more than 22% over the past week alone and was currently trading at $74.95.
According to the latest data compiled by DefiLlama, Aave’s TVL increased by nearly 60% from $3.74 billion in January to the press time value of $5.98 billion. While the recovery has been notable, Aave’s TVL was down by nearly 70% from its ATH of nearly $20 billion in October 2021.