Aave governance will migrate 1,600 ETH to wstETH and rETH

800 ETH will be converted to wsETH, and the remaining 800 ETH will be converted to rETH

article-image

Spyro the Dragon/Shutterstock modified by Blockworks

share

In an effort to put idle ether to work, Aave’s community governance has voted to convert 1,600 ETH (roughly $3 million) into wsETH and rETH held in the Ethereum Collector Contract.

The Aave DAO now holds 1,786 awETH in Aave v2, which yields 1.69%, and 104 raw ETH in the Ethereum Collector Contract. 

To make more use of the ETH sitting in the protocol, the proposal requested to move 800 ETH into Rocket Pool’s rETH — plus an additional 800 ETH into Lido’s stETH and then wrap it to receive 800 rstETH.

“This AIP converts all the unproductive ETH balance, along with aWETH (v2 and v3) into the same amounts of wstETH and rETH,” the proposal said.

A total of 17 addresses voted, 100% in favor, with the majority of votes coming from two specific addresses. One was aavechan — a delegate platform founded by Marc Zeller, Aave’s founder.

It’s commonplace to delegate votes to decision-makers in DAOs. Such delegations represent a wider community of DAO members, who share or agree with a delegate’s perspective. 

The proposal was the second that was part of a larger goal to deploy the Ethereum Collector Contract, which Aave community governance members wanted to deploy 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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

For just $54, you, too, could send a memecoin 500% higher

article-image

Memecoins, tech, and inflation have dominated the first half of the year

article-image

As the Trump administration continues to test Fed independence, markets are beginning to react

article-image

An Aave interest rate shock prompted over 475,000 validators to exit and pushed stETH into a prolonged depeg

article-image

While Roman Storm’s team is set to present its case, it’s not yet clear if the Tornado Cash founder will testify

article-image

A wireless network inspired by lost drones is now helping telco carriers reach your phone indoors