# \[ARFC\] GHO Stewards - Increase GHO Borrow Rate to 10%

**URL:** <https://governance.aave.com/t/arfc-gho-stewards-increase-gho-borrow-rate-to-10/17248>\
**Category:** Governance\
**Created:** [April 4, 2024, 2:17pm UTC](https://governance.aave.com/t/arfc-gho-stewards-increase-gho-borrow-rate-to-10/17248 "2024-04-04T14:17:08Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![karpatkey\_TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/karpatkey_tokenlogic/32/4737_2.png) [@karpatkey\_TokenLogic](https://governance.aave.com/u/karpatkey_TokenLogic)\
**Post date:** [April 4, 2024, 2:17pm UTC](https://governance.aave.com/t/arfc-gho-stewards-increase-gho-borrow-rate-to-10/17248/1 "2024-04-04T14:17:08Z")

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Title: [ARFC] GHO Stewards - Increase GHO Borrow Rate to 10%  
Author: @karpatkey_TokenLogic , @ACI & @ChaosLabs  
Created: 2024-04-04

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# Summary

A proposal to increase the GHO borrow rate to 10%.

# Motivation

With stablecoin borrow rates being consistently above 10% for the last month, this proposals seeks to increase GHO borrow rate to 10% as a progressive step towards the [13% increase](https://vote.onaave.com/proposal/?proposalId=62&ipfsHash=0xbe29a6873c3a4a326ac8b4d04132668a0dfc8f25e9b54c48576cbb0a3561019c) currently under AIP vote.

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/3/36b891194fa8afcaed297720be9dcc7c6439346a.png)

Moreover, the recent GHO supply increase was fully utilized within hours of going live, signaling stablecoin rates having strong demand at current rates.

# Specification

Increase the non-discounted borrow rate to 10%:

| Description | Current (%) | Proposed (%) |
| --- | --- | --- |
| Non Discounted Borrow Rate | 7.92% | 10% |
| stkAAVE Discount | 30% | 30% |
| Discounted Borrow Rate | 5.54% | 7% |

# Next Steps

We will move forward and implement these updates via the GHO Steward process. We will closely monitor market behavior and evaluate this decision with every increase.

# Disclaimer

Chaos Labs, ACI, TokenLogic and karpatkey have not been compensated by any third party for publishing this ARFC.

# Copyright

Copyright and related rights waived via CC0

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**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\
**Post date:** [May 4, 2024, 2:17pm UTC](https://governance.aave.com/t/arfc-gho-stewards-increase-gho-borrow-rate-to-10/17248/2 "2024-05-04T14:17:29Z")

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