Aave's USDG rollover plan offers yield below most borrowing rates per LlamaRisk assessment
Aave's proposed USDG rollover for Pendle principal tokens on X Layer yields less than USDT0, USDC, and USDG borrowing costs, making leverage and rewards key to viability.
Why it matters
The yield shortfall means borrowers extending positions through the rollover would face negative carry on borrowed funds unless leverage amplifies returns or separately administered rewards offset the gap. The plan's viability depends on OKX completing its integration and Aave finalizing the listing.
Key facts
Aave proposed a USDG rollover plan for Pendle principal tokens on X Layer
Reported by CryptoSlate
LlamaRisk's October 8 assessment found the February PT yield below USDT0, USDC, and USDG borrowing rates
Reported by CryptoSlate
GHO borrowing rate was the only one cheaper than the February PT yield in LlamaRisk's assessment
Reported by CryptoSlate
TokenLogic proposed a flash-loan transaction to execute the collateral swap
Reported by CryptoSlate
OKX must separately develop the integration for the rollover
Reported by CryptoSlate
Both Aave listing and OKX integration need implementation for the rollover to proceed
Reported by CryptoSlate
An October 10 data refresh confirmed the yield gap between February PT and borrowing rates persists
Reported by CryptoSlate
What happened
CryptoSlate reports that Aave's proposed USDG rollover plan for Pendle principal tokens maturing October 29 on X Layer would move holders into a replacement token maturing February 25, 2027. Risk provider LlamaRisk's October 8 assessment found the February token's on-chain yield falls short of USDT0, USDC, and USDG borrowing rates, with GHO as the only cheaper exception. TokenLogic's proposal involves a flash-loan transaction to swap collateral, while OKX must separately build the integration. Both the Aave listing and OKX integration require implementation. An October 10 data refresh confirmed the yield gap persists.
How the story developed
- Update
LlamaRisk publishes October 8 yield assessment for February PT
Assessment shows yield below USDT0, USDC, and USDG borrowing rates; GHO is cheaper
- Update
Pendle market API data refresh confirms yield gap
October 10 refresh shows February PT yield still below most borrowing rates
- First report
First report by CryptoSlate
Aave’s USDG rollover plan has a yield below most quoted borrowing rates
- Update
CryptoSlate publishes initial report on USDG rollover yield assessment
Article covers LlamaRisk's October 8 assessment and TokenLogic's proposal
- Update
Current PT maturity date
Existing Pendle principal tokens mature on October 29
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CryptoSlate Crypto media | Aave’s USDG rollover plan has a yield below most quoted borrowing rates | Original |
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