wstETH Gains Momentum: BNB Chain Users in Focus with Aave Proposal

Last updated: October 4, 2024 2:14 pm

Published October 4, 2024

The Aave community has initiated a vote on October 4 to add wrapped staked ETH (wstETH) to Aave v3 on the BNB Chain. According to the information on Snapshot’s governance page, the vote will conclude on October 5.

Contents

Expanding Options for Aave Users
Implementation Roadmap

Expanding Options for Aave Users

This proposal aims to extend Aave’s influence on alternative blockchains and provide more options for users on the BNB Chain. By adding wstETH, users will have the opportunity to earn returns on their staked ETH while increasing Aave’s presence on the BNB Chain. The move would offer users a broader range of borrowing and collateralization options.

wstETH is one of the most popular tokens for collateral and borrowing on the Aave protocol, with over $4 billion deposited across different deployments and $100 million in borrowing. The addition of wstETH to Aave v3 on the BNB Chain is expected to expand the protocol’s user base and offer more staking rewards.

Implementation Roadmap

The proposal has been introduced through a direct Aave Improvement Proposal (AIP) vote, which first involves discussions on risk parameters within the community forum. Afterward, the proposal will go through an AIP vote for final approval. If accepted, wstETH will be activated on Aave v3 on the BNB Chain, allowing users to utilize the token as collateral. The smart contract address for wstETH on the BNB Chain has been revealed as “0x2Bbbdf97295F73175b12CC087cF446765931e1C3.”

Meanwhile, AAVE coin, the protocol’s native asset, has seen a 5.99% rise in the last 24 hours, trading at $148.03. The token has gained momentum, increasing over 15% in the past month while many altcoins struggled.

Aave, wstETH, BNB Chain, staking rewards, AIP proposal

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ByEmiliano Trejo

Emiliano Trejo has spent the last 9 years immersed in the world of blockchain and cryptocurrencies, becoming a prominent figure in the industry. With a background in economics and a keen interest in decentralized systems, Emiliano has contributed to several groundbreaking projects, including the development of blockchain-based financial products and services. His expertise lies in the intersection of blockchain technology and economic models, where he excels in creating innovative solutions that leverage the benefits of decentralization. At DT NEWS, Emiliano shares his deep knowledge of the global cryptocurrency market, offering insights that help readers understand both the technical and economic implications of blockchain innovations.