Aave Proposes WETH Conversion for Yield Boost

tAave, the prominent decentralized crypto lending company that enables consumers to lend as well as borrow crypto assets, has witnessed a proposal made by a member. Marc Zeller, a person who is a team member of Aave, has recently published an exclusive ARFC proposal. The respective proposal has been submitted to the Aave forum.

Aave Member Marc Zeller Proposes WETH Tokens’ Conversion into the LST Tokens

The suggestion made by the proposal is the conversion of a specific proportion of the present WETH crypto holdings of the DAO of the platform into liquid staking tokens (LST). The purpose of the respective proposal is to improve yield. At present, AaveDAO possesses up to 1,561 WETH tokens, generating a yield of nearly two percent.

The target of the proposal is to convert nearly half of the respective WETH tokens to stETH. These token holdings are credited for making a yield of approximately 6.8%. In addition to this, the proposal also suggests the conversion of almost thirty percent of the above-mentioned WETH token holdings into rETH tokens.

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In addition, this 30% is responsible for generating almost 5.75%. On the other hand, the other twenty percent of the token holdings can be transformed into the rest of the decentralized LST tokens at some other time. A few days back, Aave effectively deployed Metis (an Ethereum L2 scalding protocol. The respective deployment has paved the way for bringing several decentralized finance-based products and features to its platform.

Aave Community Votes to Delay ZkSync Era’s Deployment

The community of the Aave protocol had additionally conducted a vote in support of a recent proposal that was focused on delaying the deployment of zkSync Era which is a zero-knowledge Ethereum Virtual Machine (zkEVM). The respective move aims to let the DeFi platform install performance improvements that the scaling infrastructure provides.

While Aave has not yet deployed on zkSync Era, it has declared the deployment of the protocol’s v3 on Metis. The Aave protocol’s exclusive version is considered to be beneficial for the consumers belonging to both protocols. Furthermore, the clients at Metis intend to leverage lending and borrowing services.