Aave Proposes GHO Rate Hike to 3.25% on Horizon
Aave (AAVE)
Editor:
Eugene Serbin
Cvj.ai reports that Aave has proposed raising the base borrowing rate for its GHO stablecoin on the Horizon market to 3.25% from 3.00%. This adjustment aims to address a persistent price discount, with GHO trading between 6.7 and 13.6 basis points below its $1 target over the preceding 30 days. The latest reading placed the stablecoin 12 basis points below par.
GHO debt on Horizon surged 68% to 39.0 million, rising from 23.2 million, driven by leveraged looping strategies. These strategies involve users minting GHO, using it in further leveraged positions, and selling the borrowed tokens into other stablecoins. The proposal also adjusts Stability Module redemption fees across Ethereum, Monad, and Arbitrum.
Specifically, the USDC redemption fee increases to 15 basis points from 10 basis points on Ethereum, Monad, and Arbitrum. Conversely, the fee for Ethereum USDT falls to 10 basis points from 15 basis points. Monad’s GHO reserve limit doubles to 50 million from 25 million under the same proposal. These measures target both borrowing costs and redemption economics to reduce selling pressure and support GHO’s return to its $1 target.
How the market reacted
Whalio's own Binance spot order flow for AAVE, measured when this story was written up on 16 September 2026. Not the outlet's figures.
Aave (AAVE) is currently trading at $122.22 with a 1-hour buy ratio of 62.0%, indicating strong short-term buying pressure. However, this momentum fades over longer timeframes, with the 4-hour buy ratio dropping to 43.9% and the 24-hour ratio settling at 47.1%. Volume deltas reflect this shift, showing a net inflow of $71,308 in the last hour but net outflows of $197,317 over 4 hours and $833,819 over 24 hours. The Cumulative Volume Delta (CVD) for the 24-hour close stands at -$1,058,949, suggesting that selling pressure has outweighed buying pressure over the day. Spot volume for the period reached $14,220,262 across 194,128 trades. Net buying occurred in only 8 of the 24 hours, highlighting inconsistent buyer commitment.
The latest daily buy ratio of 49.8% sits at the 52nd percentile of the last 324 days, against a median of 49.8% - ordinary for this coin.
Was that an ordinary day?
The same Binance spot measurements for AAVE, averaged over the days leading up to the story.
Over the preceding week, AAVE experienced a 5.1% price decline with a total volume delta of -$2,104,341. The 7-day average buy ratio was 49.4%, making today’s 24-hour ratio of 47.1% slightly below the weekly norm by 2.4 points. Trading volume was 1.37 times the weekly average, indicating heightened activity despite the negative price action. Net buying days were limited to 2 out of 7 in the previous week, suggesting that today’s mixed signals are part of a broader trend of subdued buyer dominance. This activity marks an unusual day in terms of volume intensity compared to the weekly baseline.