What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Aave’s October 2, 2026 governance proposal would raise GHO borrowing rates on Ethereum Core and Prime by 0.25 percentage points, aiming to encourage repayment and replenish depleted stablecoin reserves. The changes are proposed, not confirmed as executed: TokenLogic reported that GHO closed October 1 near $0.9993 and that the USDC GHO Stability Module was depleted.
What GHO rate increases did Aave propose?
TokenLogic’s October 2, 2026 proposal sets out separate changes for Aave’s Ethereum Core and Prime markets. “APR” below means annual percentage rate; Prime’s base rate is a parameter used to calculate its borrowing rate as utilization changes.
As an Amazon Associate I earn from qualifying purchases.
| Market | Parameter | Current rate in proposal | Proposed rate | Illustration |
|---|---|---|---|---|
| Ethereum Core | GHO borrow APR | 4.25% | 4.50% | Would match the 4.50% Aave Savings Rate cited in the proposal. |
| Ethereum Prime | GHO base rate | 2.75% | 3.00% | At the proposal’s recorded 86% utilization, the estimated borrowing rate would increase from about 3.92% to 4.17%. |
These are figures in the [TokenLogic governance proposal](https://governance.aave.com/)—not a live rate check. The proposal also reported USDC and USDT borrowing costs of 4.39% at that time, putting proposed Core GHO borrowing slightly above those rates.
Why is Aave raising GHO borrowing rates?
TokenLogic’s stated concern was pressure on GHO’s peg and dwindling stablecoin reserves in the GHO Stability Modules. The proposal reported that GHO traded below $0.999 for most of September 2026 and closed October 1 near $0.9993. It also said the USDC GSM was depleted and the USDT GSM held approximately 22.5 million USDT. These are the proposal author’s dated snapshot, not verified current balances.
#1 Best Overall
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
The proposed Core rate would close a 0.25-percentage-point gap between the 4.25% borrowing APR and the 4.50% Aave Savings Rate cited in the proposal. TokenLogic said the DAO was funding that difference. The proposal’s logic is that a higher borrowing cost could prompt borrowers to repay, while making GHO less attractive to borrow cheaply and sell.
How could higher rates affect borrowers and the stability modules?
If borrowers repay GHO, TokenLogic expects some may buy GHO on the secondary market to do so, potentially adding buying demand. Someone who still needs GHO could instead buy it on the market or mint it through a GSM using USDC or USDT; the proposal says those GSM mints had no mint fee. Minting through a GSM could add stablecoins back to its reserves.
These are proposed mechanisms, not demonstrated outcomes. Their effects depend on borrower decisions, market activity, module availability and settings, and continued demand for GHO. TokenLogic also expects sGHO deposits through the Aave App to offset some potential decline in borrowed GHO; that, too, is an expectation rather than a reported result.
Rank #2
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
Why is the GHO USDC Stability Module depleted?
TokenLogic’s October proposal reports that the USDC GSM was depleted and gives a snapshot of approximately 22.5 million USDT in the USDT GSM. It links the broader reserve decline to GHO selling and GSM backing outflows discussed in its August update, but the October snapshot alone does not establish the precise causes or quantify each flow.
A GSM is not simply a pool of ordinary supplier deposits. Aave describes it as a contract-based facility for swapping GHO with accepted stablecoins. Each pairing has a GSM or GSM4626 contract, with settings such as pricing and fees, exposure caps, and oracle-related conversion freezes. These controls shape when and how conversions can occur; they do not guarantee that GHO will always trade at exactly $1.
Will higher GHO rates restore the peg?
Not necessarily. The proposal argues that higher borrowing costs may encourage repayments and that repayment-related market purchases could support GHO. GSM minting could replenish stablecoin reserves. Neither mechanism guarantees a peg recovery: the proposal gives no measured post-change result, and the observed market price can still move around $1.
Rank #3
- Unparalleled Security: Protect your assets with EAL 6+ Secure Element, offering robust defense and complete transparency
- Simple & Secure Interface: Manage your digital assets easily with a clear OLED screen for secure on-device confirmations
- Supports 1000s of Coins & Tokens: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet
- Effortless Asset Management: Monitor and transact seamlessly with Trezor Suite, our intuitive desktop and mobile app
- Enhanced Backup Solution: Multi-share Backup eliminates single points of failure for secure cold wallet recovery
TokenLogic says the GHO Risk Council would monitor four indicators after implementation: GHO’s peg, GSM reserves, sGHO deposits, and GHO debt on both Core and Prime. Those measures would help show whether the intended mechanisms are occurring, but the proposal does not define a single threshold that would prove the intervention succeeded.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesDid Aave’s October 2026 GHO rate increase take effect?
The October 2 source is a proposal that uses prospective language. It says the GHO Risk Council would implement the changes by calling updateGhoBorrowRate through the Core and Prime GhoAaveSteward contracts. The proposal does not itself confirm that an on-chain execution occurred, so the rates above should be treated as proposed rather than completed changes.
Aave’s governance documentation describes Stewards as delegated managers of protocol parameters within governance-approved limits, including GHO borrow-rate and GSM settings. For this proposal, TokenLogic names the GHO Risk Council as the intended executor. [Aave documentation](https://docs.aave.com/)
Rank #4
- UNPARALLELED SECURITY: Protect your assets with Trezor Safe 5's NDA-free EAL 6+ Secure Element, offering robust defense and complete transparency.
- EFFORTLESS NAVIGATION: Experience seamless crypto management with the vibrant color touchscreen, designed for intuitive and user-friendly interactions.
- ENHANCED USER EXPERIENCE: Enjoy tactile confirmation with Trezor Touch Haptic Engine, making each interaction precise and engaging.
- SUPPORTS 1000s OF COINS & TOKENS: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet.
- EASY ASSET MANAGEMENT: Monitor and transact seamlessly with Trezor Suite, our user-friendly desktop and mobile app
How does this fit with Aave’s earlier 2026 rate changes?
In an August 27, 2026 update, TokenLogic described two 0.25-percentage-point steps that raised Core GHO borrowing from 3.75% to 4.25% and Prime’s base rate from 2.00% to 2.75%. That update framed the changes as a response to GHO being cheaper to source than comparable stablecoins, alongside selling pressure and GSM backing outflows. The October proposal is a further proposed 0.25-point increase for each market’s stated parameter, not evidence that the earlier changes resolved those pressures.
Sources: TokenLogic’s October 2 proposal; TokenLogic’s August 27 update; Aave protocol and governance documentation.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
