Aave’s USDG rollover plan has a yield below most quoted borrowing rates
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
Aave’s proposed USDG rollover would let borrowers carry their stablecoin debt into a new fixed-yield USDG position, but the replacement collateral currently yields less than three quoted borrowing rates.
Key facts
- The Oct. 7 snapshot for the February replacement quoted a 2.79% PT yield against 4.48% USDT0, 4.10% USDC and 3.67% USDG borrowing rates
- The Aave display retrieved Oct. 10 showed 59.79 million October PT units supplied and $61.12 million of borrowing across the entire X Layer market
- The Wallet campaign ends Oct. 28 at 15:00 UTC+8, or 07:00 UTC, with rewards claimable afterward
- Pendle’s market API reported a February PT implied annual percentage yield of about 2.98%, with data updated at 21:09 UTC
Summary
01 LlamaRisk’s October assessment puts February PT yield below USDT0, USDC and USDG borrowing rates, with GHO the cheaper exception. 02 In the dated illustration, higher leverage turns the negative spread on borrowed funds into a negative overall return before rewards and costs. 03 October Wallet bonus terms name the October token. The proposal concerns Pendle principal tokens, or PTs, on the X Layer network: holders of the token maturing Oct. 29 would move into a replacement maturing Feb. 25, 2027.