Aave intends to slow down borrowing demand by raising interest rates to improve the stability of GHO anchoring
On August 31, Dan Smith, a senior analyst at Blockworks Research, tweeted that Aave is discussing raising interest rates to improve the stability of GHO anchoring by slowing down borrowing demand. Previously, with the launch of sDAI (an ERC-4626 Vault token containing DSR income), they are trying to limit the leverage cycle and cause more GHO selling pressure.