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Aave · closed proposal

# Treasury Management - Add to rETH Holding (resubmission)

0x57ab…2922·ended 57y ago·MEDIUM RISK
Voters
13
AAVE voted
623396561524294.88B
≈$38868775611039792.00B
Token price
$62.35

AI summary

This proposal, a resubmission, aims to convert all Wrapped Ether (wETH) held in the Aave DAO's Ethereum Treasury into Rocket Pool ETH (rETH). The motivation is to earn a higher yield on the DAO's ETH assets, as rETH currently offers a 3.07% yield, which is better than the Aave v3 ETH deposit yield. A small reserve of 100 aEthWETH tokens will be kept for ongoing DAO expenses like gas rebates.

Impact

If passed, the Aave DAO will increase its treasury's earnings by converting its wETH holdings to rETH, benefiting the DAO's financial health. This also supports the decentralization of the Ethereum network by diversifying staking providers. No specific dollar amount is mentioned for the total wETH to be converted, so the exact financial impact cannot be determined.

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Voting results

For623396561524294.88B (100.0%)
Against0 (0.0%)
Abstain0 (0.0%)
623396561524294.88B AAVE · ≈$38868775611039792.00B · 13 votersblock 2023-12-13T13:56:47Z

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Full proposal

Original markdown · Aave

Treasury Management - Add to rETH Holding (resubmission)


title: "Treasury Management - Add to rETH Holding (resubmission)" author: "TokenLogic" discussions: "https://governance.aave.com/t/arfc-treasury-management-add-to-reth-holding/15123"

Simple Summary

This AIP will convert all wETH held in the DAO’s Ethereum Treasury to rETH.

Motivation

This AIP proposes using all available wETH to acquire rETH. The rETH yield, currently at 3.07%, surpasses the ETH deposit yield on Aave v3.

This action will yield two significant advantages for the DAO. First, it will enable the DAO to…

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