A governance vote is currently underway for AAVE, a decentralized finance (DeFi) token, regarding the conversion of approximately $3 million worth of 1,600 ether (ETH) from the protocol’s treasury.
The proposed plan is to convert the ETH into wrapped staked ether (wstETH) and rocket pool ether (rETH). These two derivative derivatives offer investors the opportunity to stake their tokens and earn a yield while maintaining liquidity.
AAVE, which ranks as the third-largest DeFi protocol with a total value locked of $6 billion, currently generates a yield of 1.69% from staking the 1,600 either directly on the Aave v2 platform.
A holder participating in the proposal highlights the potential earnings for the protocol if it decides to stake wstETH (wrapped staked ether) at a rate of 3.8% and rETH (rocket pool ether) at a rate of 3.13%.
At the time of writing, the price of Aave token is trading at $74.8, showing a notable increase of 24% over the past week. According to CoinmarketCap data, Aave tokens saw a significant spike in trading volume, reaching $227 million, which represented a 51% increase overnight.
Currently, there have been 252,150 votes cast for the proposal, and a total of 320,000 votes are needed for it to be implemented. The voting process will conclude on Friday.
Also Read: PancakeSwap v3 Launches on Polygon zkEVM With Rewards & Points
