Catenaa, Monday, March 17, 2025 – Aave DAO is moving forward with a proposal to launch a new yield-bearing “savings” version of its GHO stablecoin, aiming to expand the use cases of its token while attracting more users.
The proposal, submitted by the Aave Chan Initiative, seeks to create sGHO, a low-risk savings product that rewards GHO holders with the Aave Savings Rate, a yield generated by Aave Protocol’s operations.
Launched in 2023, GHO is designed to provide a decentralized stablecoin option within Aave’s ecosystem, offering competitive borrowing rates and generating revenue through interest payments.
As of 2025, GHO is the 20th largest stablecoin by market capitalization. The launch of sGHO would allow users to deposit GHO into the savings product, earning rewards in the form of an ERC-20 receipt token that accrues value over time. The savings rate will be determined by factors such as the amount of sGHO minted and the yield generated by Aave’s Ethereum V3 platform.
Importantly, the proposal highlights that there will be no withdrawal or deposit fees, making sGHO an attractive alternative to other yield-bearing stablecoins in the market.
Additionally, the savings rate will be tied to Aave’s native yield, which is expected to create a competitive advantage during a period of lower yield rates in the market.
This development is part of Aave’s broader strategy to increase GHO adoption, including proposals to expand GHO across different blockchains and integrate it into the Fluid ecosystem. These efforts align with Aave’s broader growth ambitions and the DAO’s decision to rebalance its treasury to support native USDC adoption.
