PANews reported on March 5 that the Aave community initiated a new proposal, planning to launch the sGHO savings product and introduce the Aave Savings Rate (ASR) to further promote the growth and adoption of its stablecoin GHO.

It is reported that sGHO is a low-risk savings product. Users can obtain compound interest based on ASR by depositing GHO, while holding ERC-20 voucher tokens that can accumulate value. The product does not charge deposit or withdrawal fees, and deposited GHO will not be re-mortgaged, thereby reducing the risk of smart contracts and ensuring instant liquidity.

The income of ASR will be supported by the revenue of Aave Protocol, providing a flexible interest rate that is fixed or linked to market fluctuations. The proposal expects that the launch of sGHO will significantly increase the circulation of GHO, helping it grow from the current $300 million to a higher level. It is worth noting that every $100 million of GHO revenue is equivalent to the income that Aave DAO obtains from $1 billion of USDC.