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DeFi Lending Protocol

Aave GHO — Decentralized Stablecoin Explained

GHO is Aave\'s native USD-pegged stablecoin — mint it directly against your collateral, with a discount if you stake AAVE.

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aave.protocol Live
Total TVL$14.5B
Cumul. Deposits$71T+
Networks12+
Security Audits15+
AAVE Token16M max supply
Fee Share100% to stakers
Current VersionAave v4 (2026)
Flash Loans0.09% fee
About

Aave GHO

GHO (pronounced "go") is a decentralized, overcollateralized stablecoin native to the Aave ecosystem. Introduced in July 2023, GHO is minted by Aave borrowers who use their collateral positions to generate GHO instead of borrowing USDC or USDT. AAVE stakers receive a borrow rate discount on GHO, creating a direct utility link between holding AAVE and accessing cheaper stablecoin liquidity.

// protocol.stats
Protocol TypeNon-Custodial Lending
TVL$14.5B
Cumul. Volume$71T+
Networks12+
Supported Assets30+
Stablecoin APY3-8% variable
AAVE Staking100% fee share
Flash Loan Fee0.09%
Versionv4 (2026)
GovernanceAAVE DAO
Features

Why Use Aave?

The most battle-tested DeFi lending protocol — supply, borrow, flash loans, GHO, and now 100% fee sharing for AAVE stakers.

[01]
💎
Mint Against Collateral
Mint GHO by borrowing against your existing Aave collateral — no external swap or DEX needed.
[02]
🏷️
AAVE Staker Discount
AAVE Safety Module stakers receive a discounted GHO borrow rate — a core AAVE utility feature.
[03]
⚖️
Peg Stability
GHO maintains its USD peg through Aave\'s overcollateralized borrowing and arbitrage mechanisms.
[04]
🌐
Multi-Chain
GHO is available across Aave\'s deployed networks — Ethereum, Arbitrum, and others.
[05]
🔄
Yield Opportunities
Deploy GHO in Curve, Balancer, or other protocols to earn additional yield on minted stablecoins.
[06]
🗳️
DAO Governed
GHO interest rate, discount structure, and minting caps are all set by AAVE governance.
Guide

How to Use Aave GHO

Step-by-step from wallet connection to earning yield and staking AAVE.

01

Understand GHO vs USDC

GHO is functionally similar to USDC but created by Aave\'s own system. It requires overcollateralized positions just like borrowing USDC.

02

Ensure You Have Collateral

Supply ETH, WBTC, or other collateral assets to Aave before minting GHO.

03

Mint GHO

In the Aave borrow interface, select GHO as the borrow asset. Enter your amount, confirm the transaction — GHO appears in your wallet.

04

Check Your Discount

If you have AAVE staked in the Safety Module, your GHO borrow rate is discounted. Check the rate displayed in the Aave UI.

05

Deploy GHO for Yield

Deposit GHO in a Curve GHO pool or Balancer to earn additional trading fees on top of the GHO utility.

Start Earning on Aave Today

Join $14.5B in TVL across 12+ networks. Supply assets to earn yield or stake AAVE for 100% of protocol fees.

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FAQ

Frequently Asked Questions

Everything about Aave GHO.

What is GHO?
+
GHO is a decentralized, overcollateralized stablecoin issued by the Aave protocol. Users mint GHO by borrowing against their Aave collateral positions. It is pegged to $1 USD.
How is GHO different from USDC or DAI?
+
USDC is issued by Circle (centralized, fiat-backed). DAI is issued by MakerDAO (decentralized, crypto-collateralized). GHO is issued by Aave (decentralized, crypto-collateralized) — similar to DAI but native to the Aave ecosystem with AAVE staker utility built in.
Is GHO always worth $1?
+
GHO maintains its peg through collateralization and arbitrage. When GHO trades below $1, arbitrageurs buy GHO and repay Aave loans at a profit (reducing supply, restoring peg). When above $1, new minting is incentivized (increasing supply).
What discount do AAVE stakers get on GHO?
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AAVE Safety Module stakers receive a discount on GHO borrow rates. The exact discount percentage is set by Aave governance and updates with protocol proposals.
Can I earn yield on GHO?
+
Yes. GHO can be deployed in Curve Finance GHO liquidity pools, Balancer pools, and other DeFi protocols to earn additional yield. This creates a positive carry if the yield exceeds the GHO borrow cost.
Reviews

What Users Say

GHO User
★★★★★

"The AAVE staker discount on GHO is elegantly designed — it creates a flywheel where holding AAVE reduces your borrowing costs, which makes Aave more capital efficient for regular users."

Stablecoin Analyst
★★★★☆

"GHO\'s peg stability has improved significantly since launch. The early depegs below $0.99 have been addressed through better arbitrage incentives. Now a credible alternative to DAI for Aave users."

Yield Strategist
★★★★★

"Mint GHO at discounted rate (AAVE staker), deploy in Curve GHO pool for 5-8% yield. Net positive carry on minted stablecoins. This is the cleanest GHO strategy for AAVE holders."

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Aave v4 is live — supply, borrow, mint GHO, and stake AAVE for 100% of protocol fees.

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