Decentralized and non-custodial liquidity protocol Aave has launched a new version of its GHO savings product, replacing legacy stkGHO with sGHO, an ERC-4626 vault that offers a fixed 4.25% annual percentage rate.
The upgrade introduces a standardized vault structure, a predictable savings rate, and a new routing system designed to simplify deposits into the protocol’s native stablecoin savings product. The announcement was shared by Aave and governance contributor TokenLogic on May 18.
New sGHO vault replaces legacy stkGHO
The new sGHO vault allows users to deposit GHO and earn yield that accrues automatically through the vault’s share price.
Under the previous stkGHO model, rewards were distributed separately and often required users to claim them manually through Merkl. With the new structure, yield is embedded directly in the token’s exchange rate, making the product easier to integrate and use. Aave said the fixed 4.25% APR is set at 50 basis points above the Sky Savings Rate.
ERC-4626 standard broadens compatibility
sGHO uses the ERC-4626 tokenized vault standard, which is widely supported across decentralized finance.
That means lending markets, yield aggregators, centralized finance platforms, and other applications that already work with ERC-4626 vaults can integrate sGHO without custom development. The standard also improves accounting by allowing balances to grow automatically as yield accrues.
GhoRouter enables one-click deposits
The upgrade also introduces GhoRouter, a smart contract that allows users to convert supported assets such as USDC into sGHO in a single transaction. This removes the need to mint GHO and then deposit it separately into the savings vault.
Aave said rewards on legacy stkGHO will be gradually reduced to zero over the next seven weeks. Migration is not automatic, so existing holders must manually move their funds to the new sGHO vault if they want to continue earning the full savings rate.
The legacy contract will remain accessible during the transition period, but its yield will decline as incentives are phased out.
GHO savings product gets simpler
The move consolidates Aave’s stablecoin savings product into a format that is easier to understand and more compatible with the broader DeFi ecosystem.
By replacing a rewards-based model with a fixed-rate ERC-4626 vault, Aave is shifting toward a structure that more closely resembles standardized onchain savings products.
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