TechFlow News, March 5 — Aave founder Stani Kulechov revealed that Aave is proposing to launch a new savings product called sGHO, along with the introduction of the Aave Savings Rate (ASR) mechanism. This product will serve as a low-risk savings solution, allowing users to earn yield on the GHO stablecoin. Yields will be sourced from Aave’s native lending rates and a portion of GHO borrowing incentives, with no fees for deposits or withdrawals.
Stani estimated that sGHO could increase GHO’s circulating supply by $300 million to $500 million, noting that every $100 million in GHO generates income for the Aave DAO equivalent to $1 billion in USDC. He added that sGHO will offer Aave users a stable on-chain savings rate, making it an ideal entry product for new users entering on-chain finance.
