# GHO stewards propose higher V3 borrow rates amid reduced GSM reserves

> The proposal would increase Core APR from 4.25% to 4.50% and Prime base rate from 2.75% to 3.00%. The notice reports the USDC GSM depleted and approximately 22.5M USDT remaining in the USDT GSM.

- URL: https://riadefi.com/on-chain/2026-10-02-aave-gho-october-2026-borrow-rate-update/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2026-10-02
- Version: 1, published 2026-10-05 (first published 2026-10-05)
- Follow-up: 2026-10-08
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

TokenLogic proposed 25 basis point increases to GHO borrowing rates on Ethereum Core and Prime, alongside a first-party report of diminished GSM redemption reserves.

## What changed

The proposal would increase Core APR from 4.25% to 4.50% and Prime base rate from 2.75% to 3.00%. The notice reports the USDC GSM depleted and approximately 22.5M USDT remaining in the USDT GSM.

## What did not change

Execution is not established. The proposal preserves the remaining Prime interest-rate curve and reports the Aave Savings Rate at 4.50%; it does not report an sGHO withdrawal failure.

## Confirmed

- The notice specifies the proposed Core and Prime rate changes.
- The GHO Risk Council is designated to execute through the respective GhoAaveSteward contracts.
- TokenLogic reports depleted USDC GSM reserves and approximately 22.5M USDT reserves.
- The notice calls for monitoring the peg, GSM reserves, sGHO deposits, and GHO debt after execution.

## Still open

- Execution transactions and current rates.
- Current GSM balances and proposed-size redemption availability.
- Whether borrowers replenish reserves after the rate change.

## What it means for an advisor

- Review GHO borrowing-cost assumptions and distinguish sGHO-to-GHO withdrawal from GHO-to-stablecoin redemption.
- Check proposed-size exit liquidity across GSM and secondary-market routes before relying on reserve availability.

## Sources

1. [[GHO Stewards] October 2026 - GHO Borrow Rate Update](https://governance.aave.com/t/gho-stewards-october-2026-gho-borrow-rate-update/25754) · TokenLogic / Aave governance · 2026-10-02


---

Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.