The Aave community has initiated a voting process for a proposal to integrate the wrapped staked ETH (wstETH) token into Aave v3 on the BNB Chain, which began on October 4. According to information on the Snapshot management page, the voting will conclude on October 5.
Aave Enhances User Options
The proposed addition aims to broaden Aave’s impact on various blockchains and provide more options for users on the BNB Chain. Specifically, the inclusion of wstETH will allow users to earn rewards on their staked ETH. This move is expected to enhance Aave’s presence on BNB Chain, offering users a wider array of borrowing and collateral options.
wstETH has emerged as one of the most popular collateral and borrowing tokens within the Aave protocol. With over $4 billion in deposits and $100 million in borrowings across various Aave distributions, adding wstETH to Aave v3 on the BNB Chain aims to expand the user base and offer more staking returns.
Proposal Implementation Roadmap
The proposal was submitted within the framework of an Aave Improvement Proposal (AIP) voting process, starting with discussions on risk parameters in the community forum.
Following this, the proposal will be presented for a final AIP vote. If approved, the wstETH token will become active on Aave v3 on the BNB Chain, allowing users to utilize it as collateral. The smart contract address for wstETH on BNB Chain has been disclosed as “0x2Bbbdf97295F73175b12CC087cF446765931e1C3.”
As of the writing of this article, the main network asset of the protocol, AAVE coin, is trading at $148.03, up 5.99% in the last 24 hours. AAVE coin has been performing well recently, showing an over 15% value increase during the past month, despite most altcoins experiencing declines.
