GHO is Aave's native overcollateralized stablecoin. Users mint GHO against their Aave positions at rates set by Aave governance. Deep Aave ecosystem integration and native GHO Savings Rate make it a strong DeFi-native stablecoin option.
What GHO is
GHO is minted by Aave users against their existing Aave collateral. Borrow rate is set by Aave governance, often below prevailing stablecoin borrow rates because GHO is a direct Aave revenue product.
GHO Savings Rate
Similar to Sky's DSR — deposit GHO to earn yield paid from protocol revenue. Rates competitive with alternatives; useful for GHO holders wanting native yield without additional DeFi risk.
Circulation and adoption
Small vs DAI/USDC (~$300M vs $10B+ for DAI). Growing steadily as more users find GHO borrowing rates competitive.
Verdict
GHO is Aave's DeFi-native stablecoin — clean design, competitive rates, native ecosystem integration. Small but well-designed. Best for active Aave users.