Aave token holders are currently voting on whether 1,600 Ether (ETH) valued at approximately $3 million in the protocol’s treasury will be converted to liquid staking derivatives, such as wrapped staked Ether (wstETH) and Rocket Pool Ether (rETH). Liquid staking derivatives allow investors to stake tokens for a yield while still maintaining liquidity.
The Aave protocol, which is the third-largest DeFi protocol and has a total value locked of $6 billion, currently earns a yield of 1.69% from the 1,600 ETH by staking it directly on the Aave v2 platform. According to one holder, the protocol would earn 3.8% by staking wstETH and 3.13% by staking rETH.
The Aave token has seen a 7.24% increase in the past 24 hours and a 29% rise over the past week, according to CoinMarketCap. As of press time, 252,000 votes have been cast out of the 320,000 required for the proposal to be actioned. The vote will close on Friday. The majority of votes, all of which are in favor of the proposal, have been submitted by a wallet named aavechan.eth which holds $397,000 worth of staked Aave (stAave) tokens, according to Etherscan.