• Aave holders are voting on a proposal to convert 1,600 ETH valued at $3 million into wstETH and rETH.
• The Aave token has risen by 7.24% in the past 24 hours.
• The vote will close on Friday with 252,000 votes cast out of the 320,000 required for the proposal to be actioned.

Aave Holders Vote on Proposal

Aave holders are currently voting on a governance proposal that would see 1,600 ether (ETH) worth $3 million from the protocol’s treasury converted to wrapped staked ether (wstETH) and rocket pool ether (rETH). These liquid staking derivatives enable investors to stake tokens for yield while retaining liquidity.

Current Yield Earned From Ether

The current yield earned by staking the 1,600 ETH directly onto Aave v2 platform is 1.69%. One holder noted that staking wstETH would earn 3.8%, while staking rETH would earn 3.13%.

Aave Token Performance

The price of the Aave token has increased by 7.24% in the past 24 hours and 29% over the past week according to CoinMarketCap data. The total value locked in Aave is currently at $6 billion making it the third largest DeFi protocol as of press time.

Voting Results So Far

At press time 252,000 votes have been cast out of a required 320,000 for the proposal to be actioned when voting closes on Friday. All votes so far have been in favor of this proposal with most coming from a wallet named “aavechan” which holds $397,000 worth of staked aave (stAVE) tokens according to etherscan data.

Conclusion

It remains to be seen if this governance proposal will be successful but whichever way it goes it will certainly impact how much yield can be earned through holding and staking Aave tokens in future weeks and months