GHO
Aave's native overcollateralized stablecoin — minted by borrowing against Aave collateral positions.
GHO is Aave Protocol's native stablecoin, launched on Ethereum in July 2023. It is minted (borrowed) by users who post supported collateral in Aave V3 or V4 markets, with a borrow rate set by the Aave DAO rather than an algorithmic utilization curve. On repayment, GHO is burned. Interest payments flow to the Aave DAO treasury. As of May 2026, GHO supply was approximately $583M per DeFiLlama/CoinLaw data, with GHO having grown over 245% since early 2025 per The Defiant (February 2026). The Aave V4 upgrade (March 2026) made GHO natively mintable from any V4 Spoke across networks and introduced a multi-facilitator system with an Anchor module for peg defense via USDC.
- GHO supply approximately $583M in May 2026 (CoinLaw, Aave Statistics 2026); crossed $500M for the first time in February 2026 per The Defiant.
- Borrow rate set by Aave DAO governance, not utilization curve; holders who stake GHO into stkGHO (Umbrella module) earn approximately 5.52% APY in Q1 2026 with slashing risk backstop role.
- Aave V4 (March 2026 launch) makes GHO mintable from any V4 Spoke on supported chains beyond Ethereum mainnet, expanding supply channels beyond a single chain.
- All GHO interest revenue flows to the Aave DAO treasury, which funds a $50M annual AAVE token buyback program approved by governance.
- GHO is accepted in Balancer and Curve pools for LP yield; stkGHO earns protocol emissions and serves as a first-loss buffer for Aave's Safety Module.
Frequently asked questions
How is GHO different from DAI?
Both are overcollateralized DeFi-native stablecoins. DAI is issued by Sky and backed by a diversified collateral pool (ETH, USDC, RWAs). GHO is issued by Aave DAO and minted directly against Aave lending positions — your Aave collateral stays in the lending market earning yield while you borrow GHO against it. GHO interest goes to Aave's treasury; DAI interest goes to Sky's treasury. GHO's supply is smaller and its DeFi integrations are still growing vs. DAI's nine-year base.
Can GHO lose its $1 peg?
GHO has experienced mild deviations from $1 in secondary markets, typically when borrow demand is weak and secondary supply exceeds demand. Aave's V4 Anchor module provides peg support via controlled USDC mint/redeem, which tightens the peg mechanism. As with any CDP stablecoin, a systemic Aave exploit that impairs collateral could pressure the peg.
Why would I mint GHO instead of borrowing USDC on Aave?
GHO's governance-set borrow rate can be lower than USDC's market rate when Aave DAO has set competitive rates, and AAVE stakers receive a discount on GHO borrow rates (stkAAVE holders get a rate rebate). Additionally, minting GHO keeps you in the Aave ecosystem and contributes to DAO revenue rather than paying interest to USDC suppliers.