Aave raises GHO borrow rate as redemption reserves deplete
Aave (AAVE)
Editor:
Eugene Serbin
Cryptobriefing.com reports that the GHO Risk Council has increased the core GHO borrow rate on Ethereum to 5% and raised the base rate on the Prime market. This adjustment follows a proposal by TokenLogic on October 2, 2026, which aimed to align borrowing costs with the Aave Savings Rate of 4.50% to eliminate arbitrage opportunities. The move addresses a situation where Ethereum’s USDC conversion module was nearly empty, threatening GHO’s peg.
Higher borrowing costs encourage users to repay loans, which can help refill stability modules by driving demand for GHO. The USDT GSM currently holds approximately 22.5M USDT, while the USDC module remains depleted. These rate hikes are the third adjustment in recent months, following increases in August and September.
The council can execute these changes via the updateGhoBorrowRate function without a full governance vote, provided they stay within preset limits. This strategy aims to reduce artificial supply created by users minting GHO solely to farm sGHO yields.
How the market reacted
Whalio's own Binance spot order flow for AAVE, measured when this story was written up on 5 October 2026. Not the outlet's figures.
AAVE is trading at $179.13 with a 24-hour buy ratio of 45.7%, indicating that buying pressure is fading compared to the 1-hour ratio of 37.6% and the 4-hour ratio of 42.8%. The volume delta shows net selling of -$169,589 over the last hour and -$630,557 over four hours, resulting in a cumulative 24-hour delta of -$1,401,026. A negative volume delta means that sell volume exceeded buy volume during these periods, pushing the price down. Despite this, net buying occurred in only 9 of the last 24 hours, suggesting inconsistent buyer support. Spot volume for the period was $16,311,248 across 108,479 trades.
The latest daily buy ratio of 52.3% sits at the 82nd percentile of the last 322 days, against a median of 49.8% - stronger buying than most days.
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 saw a 7-day average buy ratio of 48.9%, which is 3.3 percentage points higher than today's reading. Trading volume was just 0.41 times the average, indicating significantly lower activity than usual. The coin gained 15.9% over eight days, but the total volume delta for that period was -$3,439,374. This is an unusual day for the coin, as volume is less than half the weekly average. The drop in the buy ratio from the weekly average further highlights the shift toward selling pressure.