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Aave raises GHO borrow rates for Ethereum Core’s depleted reserves

The GHO borrow rate was set at 4.5%, and Aave said the change is meant to boost repayment GHO flowing back into its stablecoin modules.

Reported · Written up by our desk · Market Structure

Aave has raised the borrowing rate for its GHO stablecoin on the Ethereum Core market, listing a 4.5% rate as part of an effort to address depleted stablecoin pools.

CryptoSlate reports that Aave links the incentive to repay to how borrowers acquire and return GHO, noting that stablecoin exits depend on reserve inflows, conversion routes, and funding duration. Aave also described its savings token, sGHO, as instantly redeemable into GHO, while converting to USDC or USDT requires a separate step.

According to CryptoSlate, TokenLogic reported on Oct. 2 that the USDC GHO Stability Module (GSM) was depleted and said the rate increase should help replenish reserves if borrowers bring repayment GHO into those modules. The outlet also notes that the rate change alone does not prove improved USDC conversion liquidity.

Aavescan’s Core GHO data dated Oct. 5 showed snapshots indicating the borrow APR moved to 4.5% between Oct. 4 and Oct. 5, following a 4.25% reading at midnight UTC on Oct. 3.

Latest closeEthereum $2,713.62 ▼0.5%

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