Holders of decentralized finance (DeFi) token Aave are collaborating in a governance vote on whether or not 1,600 ether (ETH) valued about $3 million within the protocol’s treasury will likely be transformed to wrapped staked ether (wstETH) and rocket pool ether (rETH).
Wrapped staked ether and rocket pool ether are liquid staking derivatives that allow buyers to stake tokens for a yield while retaining liquidity.
Aave, which is the third-largest DeFi protocol and has whole worth locked of $6 billion, at present earns a yield of 1.69% from the 1,600 ether by staking it instantly on the Aave v2 platform.
One holder notes within the proposal that the protocol would earn 3.8% by staking wstETH and three.13% by staking rETH.
The value of the Aave token has elevated by 7.24% prior to now 24 hours for a 29% rise over the previous week, in response to CoinMarketCap.
There are at present 252,000 votes solid out of the 320,000 required for the proposal to be actioned. The vote will shut on Friday.
Nearly all of votes, all of that are in favor of the proposal at press time, have been submitted by a pockets named “aavechan.eth” which holds $397,000 value of staked aave (stAave) tokens, in response to etherscan.