Aave hikes GHO borrow rates to rescue depleted stablecoin pools
Aave‘s Ethereum Core market lists a 4.5% borrowing rate for GHO, aligning the stablecoin’s borrowing cost with the savings rate TokenLogic reported on Oct. 2. Related Asset GHO GHO · Stablecoin The next test is whether the change brings USDC or USDT into the reserves available to savers who choose to convert withdrawn GHO into USDC or USDT. Aave describes its savings token (sGHO) as redeemable instantly into GHO, so a holder who wants USDC needs a separate conversion. A higher borrowing rate can change the incentive to repay, but the route used to acquire that repayment GHO determines whether stablecoins enter the reserves. Related Asset Aave AAVE · $181.82 24-hour change: up 1.18% The DAO service provider reported a depleted USDC GHO Stability Module (GSM) on Oct. 2, and said the rate increase should help replenish reserves if borrowers obtain repayment GHO through the modules. Related Asset USDC USDC · Stablecoin The effect on reserves depends on borrowers bringing stablecoins into those modules, and the new rate alone does not demonstrate improved USDC conversion liquidity. Aavescans Core GHO data dated Oct. 5 displays a 4.5% borrow APR. Its daily snapshots show 4.25% at midnight UTC on Oct. 3 and 4.5% at midnight on Oct. 4 and Oct.









