Aave hikes GHO borrow rates to rescue depleted stablecoin pools
Summary
Aave raised the borrowing rate for GHO on its Ethereum Core market from 4.25% to 4.5%, matching the reported sGHO savings rate and removing a 25-basis-point incentive gap previously funded by the DAO. The change may encourage repayment, but does not by itself improve USDC or USDT conversion liquidity: that depends on borrowers supplying stablecoins to GHO Stability Modules or on durable alternative funding. Core borrowing fell slightly, from 116 million GHO on Oct. 2 to 115.8 million on Oct. 5. Assessing whether exits have become easier requires current reserve balances and usable routes that account for fees, pool liquidity and cross-chain delays.
