GHO Borrow Rate Question

Allow me to present the following scenario to illustrate my question.

Assume that I deposit 100,000 DAI into AAVE and borrow 20,000 GHO against it at 12% interest today.

One day later, I decide to stake some AAVE in the safety module.

Does the fact that I have now staked AAVE into the safety module activate the incentivized reduced interest rate moving forward? Or, based upon how it is set up, would I have to close my original GHO borrow position and initiate a new one in order to “activate” the lower interest rate incentive.

@Leritu GHO borrowing rate is automatically adjusted based on user’s stkAave balance.
If you supply some AAVE to the Safety Module or just receive some stkAave tokens, your borrow rate will be automatically updated (if changed, decreased).

1 Like