PANews reported on March 6 that according to The Block, the lending protocol Aave is planning to create a savings product called "sGHO" around its native stablecoin GHO and the new "Aave Savings Rate". This move is part of the trend of on-chain stablecoins expanding the functions and use cases of fiat-pegged tokens while providing returns to holders. Similar products include MakerDAO's "savings USDS" and Noble's USDN.
"Aave's GHO stablecoin has seen strong growth during 2025 and is currently the 20th largest stablecoin," reads a "temporary check" governance proposal. "Despite strong growth to date, growing from 200 million to over 300 million will present a different set of challenges and require a different approach." According to the proposal submitted by the Aave Chan Initiative, sGHO is intended to be "a low-risk savings product." Similar to many interest-bearing stablecoins, sGHO will serve as a complementary asset to the "collateralized tokens" used to secure the protocol. Deposited GHO will be locked in the sGHO contract rather than being re-hypothecated to "minimize risk." The savings rate will be determined in part by the amount of sGHO minted by the user - the larger the holding base, the lower the return or the need for additional funding. In particular, the Aave savings rate will be linked to the native yield generated by Aave V3's "USDC native yield" on the Ethereum mainnet.
Additionally, users do not have to pay deposit and withdrawal fees. “As a yield product, creating friction through fees would reduce the attractiveness of the product and put sGHO at a disadvantage compared to similar products in the market,” the proposal reads. The proposal notes that sGHO is “most similar” to Sky Ecosystem’s sUSDS product. sGHO appears to be part of a series of initiatives aimed at expanding GHO’s user base, including a proposal to use the stablecoin as a “gas token across different blockchains” to expand Aave’s “GHO cross-chain strategy.” The interim check passed two days ago with 100% of the vote. Similarly, there are other individual proposals aimed at expanding GHO to the Fluid ecosystem, Arbitrum, and other ecosystems.
