In a new development for the Aave protocol, a majority of Aave token holders have voted in favor of a governance proposal regarding the conversion of $3 million from the protocol’s treasury.
Quick facts:
- Aave token holders support the conversion of $3 million from the treasury for the benefit of the protocol.
- The proposal involves converting 1,600 Ether into wrapped staked Ether (wstETH) and rocket pool Ether (rETH), maximizing yield for token holders.
- AAVE token experiences a 22% surge in value, and Aave’s Total Value Locked (TVL) grows by nearly 60%.
- Aave introduces features to enhance its stablecoin, GHO, including GHO lending against collateral deposits, increasing liquidity and usability.
The proposal, initiated on July 3rd, involves the conversion of 1,600 Ether (ETH) into wrapped staked Ether (wstETH) and rocket pool Ether (rETH). This decision opens up new possibilities for the utilization of treasury funds and aligns with the evolving dynamics of the decentralized finance (DeFi) space.
The voting process, which took place among Aave token holders, has seen substantial support for the proposal, with 252,152 affirmative votes recorded so far, surpassing the required threshold.
Aave Governance Proposal: Aave
The voting period is set to conclude on July 7th, providing ample time for token holders to participate and express their opinions on the matter.
Wrapped Staked Ether (wstETH) and Rocket Pool Ether (rETH) are staking derivatives that enable participants to earn staking rewards. The proposal aims to convert unproductive ETH balances, including aWETH (v2 and v3), into equal amounts of wstETH and rETH.
This conversion offers token holders an opportunity to maximize the potential yield on their holdings and contribute to the growth of the Aave ecosystem. The Aave protocol has experienced a notable recovery in recent weeks, in line with the broader digital asset market.
Aave’s native token, AAVE, has seen a remarkable surge, with a 22% increase in value over the past week alone. At the time of writing, it was trading at $75.11.
This impressive performance is a result of the Aave platform’s cutting-edge features and robust community backing, which are driving growing confidence and interest in it.
Aave’s Total Value Locked (TVL) grows by nearly 60%.
The Total Value Locked (TVL) in Aave has also witnessed substantial growth, rising by nearly 60% from $3.74 billion in January to a current value of $5.98 billion, as reported by DefiLlama. While this recovery is significant, it is important to note that Aave’s TVL remains below its all-time high of nearly $20 billion, reached in October 2021.
However, the community’s backing of the treasury conversion proposal indicates a collective effort to further enhance the platform’s performance and expand its capabilities.
By approving the conversion of the treasury funds, the Aave community showcases its commitment to optimizing the utilization of resources and exploring innovative investment opportunities within the DeFi landscape.
As the voting period nears its conclusion, Aave token holders have demonstrated their active engagement and influence over the protocol’s development. Their support for the treasury conversion proposal sets the stage for further growth and innovation within the Aave ecosystem.
Aave Proposes Features to Boost Utility of Native Stablecoin
Aave’s native stablecoin, GHO, has taken a significant step forward in its journey toward launching on the Ethereum mainnet. Aave Companies, the developer behind the project, has proposed two essential features that aim to enhance the utility of GHO while ensuring its stability remains intact.
GHO has already undergone rigorous testing on the Ethereum blockchain’s Goerli testnet since February, operating smoothly without encountering any major issues. Building upon this successful testing phase, Aave Companies presented their governance proposal, introducing the V3 Ethereum Facilitator and the FlashMinter Facilitator.
