According to BlockBeats, on July 1, the Aave community initiated a vote on the 'Lower wstETH Reserve Factor' ARFC proposal. The purpose of this proposal is to reduce the reserve factor of wstETH to 5%.
The Aave community is a decentralized finance protocol that allows people to lend and borrow a broad range of cryptocurrencies. The wstETH is a wrapped version of stETH, which is a token that represents staked ether in Ethereum 2.0. The reserve factor is a percentage of the interest earned on loans that is taken by the protocol as a form of insurance against potential losses.
The proposal to lower the reserve factor of wstETH to 5% is a significant move that could potentially affect the overall performance of the Aave protocol. The outcome of the vote will determine the future direction of the protocol and its impact on the DeFi ecosystem.