AAVE owners vote on the conversion of ETH into Wsteth and Reth: Bull Run remains in the focus

AAVE owners vote on the conversion of ETH into Wsteth and Reth: Bull Run remains in the focus

Bull Run: Aave holder votes about the conversion of ETH into Wsteth and Reth AB

The Aave token has increased by more than 26 % in the past seven days and continues its long-term upward trend. Because of this development, the AAVE owners voted on a governance proposal called "Treasury Management-Acquire Wsteth & Reth". The proposal stipulates to convert 1,600 ETH into the same amounts to Wsteth and Reth, which are then to be held in the Ethereum collector's contract.

At the time of printing, all 252,152 votes cast spoke out for the proposal. In order to implement the proposal, a total of 320,000 votes are required. However, it seems that the majority of Aave Dao members agree to the proposal.

Why is it considered to convert ETH in Wsteth and Reth? AAVE is currently the third largest Defi protocol with a total value of $ 6 billion. The Aave DAO holds 1,786.51 AWeth and 104,548 ETH in the Collector Contract.

The return of the AWeth inlays in AAVE V2 is currently 1.69 %. However, if the Aave Dao would hold Wsteth or Reth, they could achieve higher returns of 3.8 % or 3.13 %. It is therefore proposed to convert the entire unproductive ETH credit together with AWeth (V2 and V3) into the same amounts to Wsteth and Reth in order to achieve higher applications.

The two tokens, Wsteth and Reth, also offer additional advantages. They are liquid staking derivatives that enable AAVE to set the tokens for an yield and at the same time maintain liquidity. This is particularly important for defi protocols such as AAVE that rely on liquidity in order to be able to offer their services.

It remains to be seen whether the proposal for conversion of ETH into Wsteth and Reth will ultimately be implemented successfully. In view of the current support from the Aave Dao members, however, a positive decision seems likely. This development could continue to promote the growth of Aave and the Bull Run of Aave token.

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It will be exciting to observe how the vote develops and whether the conversion of ETH into Wsteth and Reth will bring the expected higher yields for the Aave DAO. In any case, as one of the leading defi protocols, AAVE remains in the spotlight and can remain successful due to its innovative approaches and support his community.