Aave Raises Core GHO Borrow Rate to 4.5% on Thin Redemption Reserves

The move is a defensive rate hike, not a demand signal: with the USDC conversion module nearly empty, the peg's backstop is effectively the borrow rate itself. That shifts the burden onto GHO borrowers and Prime users facing a higher base rate, while leaving the structural fragility — redemption capacity — unaddressed. Whether the higher rate restores enough redemption headroom, or simply suppresses borrowing without fixing the thin reserve, is the open question.