Aave hikes GHO borrow rates to rescue depleted stablecoin pools

Key Summary

Aave has increased its borrowing rate for GHO stablecoin to 4.5%, aligning with its savings rate, in an effort to replenish depleted stablecoin pools. This change aims to incentivize borrowers to repay, but the actual effect on reserves depends on whether borrowers bring stablecoins into the Stability Module (GSM) or use the secondary market to acquire GHO. As of October 5, Aave's Core GHO data shows a 4.5% borrow APR, up from 4.25% on October 3. The change is specific to Core and the 4.5% savings rate, which eliminates the previously stated 25-basis-point difference between borrowing and savings rates.