Aave's Ethereum Core market now lists a 4.5% GHO borrowing rate, matching the savings rate TokenLogic reported on Oct. 2. According to NS3.AI, TokenLogic said the USDC GHO Stability Module was depleted and argued that higher borrowing rates could help replenish reserves if borrowers obtain repayment GHO through the modules.

The report said repayments made with GHO purchased on the secondary market do not necessarily add stablecoins to those reserves. Aave describes sGHO as redeemable into GHO without a cooldown, but converting into USDC or USDT still depends on separate conversion steps and the availability of inventory and liquidity. The higher borrowing rate alone does not show that conversion liquidity has improved.