CDS Crypto News Aave Community Votes to Convert 1600 ETH to wstETH and rETH
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Aave Community Votes to Convert 1600 ETH to wstETH and rETH

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Aave Community Votes To Convert 1,600 Eth Into Wseth And Reth, Held In The Ethereum Collector Contract. This Is To Optimize The Use Of Sources In The Protocol

In a strategic move to optimize idle ether, the Aave community governance has voted in favor of converting 1,600 ETH, approximately $3 million, into wsETH and rETH.

Aave Community Votes to Convert 1600 ETH to wstETH and rETH

Aave Community Votes To Convert 1,600 Eth Into Wseth And Reth, Held In The Ethereum Collector Contract. This Is To Optimize The Use Of Sources In The Protocol

These assets will be held in the Ethereum Collector Contract, marking a significant step in the utilization of Ethereum in the Aave protocol.

Aave DAO’s Current Holdings

Currently, the Aave DAO holds 1,786 awETH in Aave v2, yielding a return of 1.69%, and 104 raw ETH in the Ethereum Collector Contract. The decision to convert these holdings is aimed at maximizing the use of ETH within the protocol.

Proposal for Conversion

Aave Community Votes To Convert 1,600 Eth Into Wseth And Reth, Held In The Ethereum Collector Contract. This Is To Optimize The Use Of Sources In The Protocol

The proposal put forth suggested moving 800 ETH into Rocket Pool’s rETH, along with an additional 800 ETH into Lido’s stETH. The latter would then be wrapped to receive 800 rstETH. This conversion of the unproductive ETH balance, along with aWETH (v2 and v3), into equal amounts of wstETH and rETH, was unanimously approved by the 17 addresses that voted.

Voting and Delegation in DAOs

The majority of votes came from two specific addresses, one of which was aavechan, a delegate platform founded by Marc Zeller, Aave’s founder. Delegating votes to decision-makers is a common practice in DAOs, representing a wider community of DAO members who share or agree with a delegate’s perspective.

Future Proposals

This proposal was the second part of a larger goal to deploy the Ethereum Collector Contract. Aave community governance members aim to use this contract to earn yield on existing funds. An initial proposal to consolidate collector contract assets had already passed earlier in May, with 100% of voters in favor. A third and final proposal to acquire Balancer Boosted Aave USD (BB-A-USD) through Cowswap, then deposit 50-50 between Balancer and Aura Finance, is set to follow.

Sources:blockworks

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