Summary
LlamaRisk offers tentative support for the ARFC to onboard PT eUSDe-29-May-2025 to the Aave v3 Core instance. This support is conditional on the Aave DAO’s assessment of whether the technical integration effort is justified by the asset’s limited remaining maturity of 39 days.
Analysis indicates that the underlying eUSDe token’s yield stems from accruing Ethereal points, with a future token launch potentially impacting their value. The PT eUSDe yield is fixed based on a purchase discount. Demand is driven by yield and speculative interest in future incentives despite recent moderation in returns.
With only 39 days until maturity, the implied PT yield has been trending downwards, mirroring broader market conditions and potentially waning interest in the speculative points program. The absence of other eUSDe PT maturities suggests that the Ethereal points program may be nearing its conclusion, raising questions about Aave’s long-term utility and user interest.
ChaosLabs will provide specific parameter recommendations and details regarding the pricing oracle in a separate update.
Assessment of PT base asset: Link
Considered PT asset maturities: eUSDe-29-May-2025
Asset State
Underlying Yield Source
The yield mechanism for eUSDe involves holding the token to accrue Ethereal points, which provide an additional layer of rewards, potentially convertible to tokens or other benefits in future launches. It should be noted that the value and longevity of Ethereal points depend on Ethereal’s success and tokenomics, with a token launch expected in May 2025.
For eUSDe PT tokens, the yield is implied through buying at a discount and redeeming at par value at maturity, as is typical in Pendle Finance’s principal token structure. The PT token represents the right to redeem the underlying eUSDe at maturity, capturing the fixed yield based on the discount at purchase.
Underlying utility
Investor demand for eUSDe and its PT instrument stems primarily from yield considerations and speculative positioning around future incentives. In February and March, the Pendle pool offered headline annual percentage rates close to 14%; since then, returns have moderated to about 4.5% for Pendle liquidity providers, with Euler’s supply APY currently below 4%. Even at these lower levels, participants remain attracted by the possibility of amplifying their Ethena rewards multiplier, which can translate into additional Ethereal points and potential future airdrops or related benefits. This speculative layer complements the intrinsic yield, creating some users who consider valuable optionality. Finally, eUSDe benefits indirectly from the broader market footprint of its underlying asset, USDe, whose established liquidity base helps draw capital into both the spot token and PT derivatives.
Underlying Stability
The underlying eUSDe is a receipt token for USDe deposited in Ethereal’s spot and perpetual trading platform. At the time of writing, Ethereal DEX has not been launched yet, and USDe deposits serve purely for bootstrapping the initial supply in the platform. The USDe deposits can be redeemed at a 1:1 ratio at any time without a cooldown period. Moreover, the deposits in the vault are idle and are not used as a risk coverage layer for the protocol. All of this makes the eUSDe token inherit equivalent stability risks as the USDe token. Therefore, nations’ supposed asset yield flux are,e based purely on the nature of the speculative rewards program.
In turn, the secondary market peg of USDe has remained stable after the last stress instance during the Bybit exploit incident. The secondary market discount of USDe has not exceeded 20 bps since then.
Source: LlamaRisk, April 19th, 2025
Total Supply
Since the beginning of April, as the pool has matured and market conditions have changed, the SY eUSDe supply has subdued at ~730M. At the same time, available pool liquidity has been slowly reducing and flattened at ~200M. The difference between these values roughly represents the supply of PT eUSDe, with PT eUSDe being part of the available liquidity amount. This equates to a total PT eUSDe supply of 550M tokens.
Source: LlamaRisk, April 19th, 2025
Holders
The PT eUSDe token holder distribution reveals a notably high concentration among a few addresses. The top 10 holders collectively control approximately 91% of the total token supply. More than 30% of the token eUSDe PT supply ($176M) currently resides on Morpho. The second and third largest holders are not contracts. However, their identities cannot be attributed to a particular entity/project/team.
Source:
Etherscan, Date: April 15th, 2025
Liquidity
As mentioned above, the eUSDe pool maintains an estimated liquidity of $204.19M. More than 90.5% of that amount is currently held in SY eUSDe, while the remaining 9.5% is in PT eUSDe tokens.
Source:
Pendle, April 19th, 2025
The market’s order book composition indicates lower trading activity, with a bid-ask spread at 0.5% of implied yield. These observations also align with the lower broader market activity since the beginning of April.
Source:
Pendle, April 19th, 2025
The PT-eUSDe-29-May-2025 pool has the following parameters:
| Parameter |
Value |
| Liquidity Yield Range |
8.5% - 38.5% |
| Fee Tier |
0.14% |
| Input Tokens |
$USDe, $eUSDe |
| Output Tokens |
$USDe, $eUSDe |
| Reward Tokens |
$PENDLE |
Market State
Price and Yield
At the time of writing, there rremain39 days until the tool’s maturity. The implied PT yield is at 7.8% APY with the PT price of 0.9916. The implied PT yield and the LP yield have been trending down since the pool’s inception, representing worsening broader market conditions and fading speculative points program interest.
Maturities
The eUSDe PT matures on May 29th, 2025, with 39 days left until maturity at writing. No other PT pools with different maturities are available, which suggests that the Ethereal eUSDe points program is approaching its end. This questions the utility for Aave DAO and user interest in case of potential PT token deployment on the Core instance.
Integrated Venues
PT Ethereal eUSDE-29-May-2025 is also present on Morpho and Euler. On the Morpho lending platform, 175M tokens are currently supplied to 3 different vaults as collateral, non-borrowable. On Euler, 20.77M tokens are supplied and used as collateral only.
Source:
Pendle, April 19th, 2025
Recommendations
Aave Market Parameters
Presented jointly with @ChaosLabs. Other parameters will be handled via Risk Oracle.
Price Feed
For pricing PT tokens on Aave, a specific dynamic linear discount rate oracle has been developed by BGD Labs. It is recommended that PT eUSDe tokens would be priced using it. In addition, due to full direct redemption availability, eUSDe would be priced on par with USDe, therefore using USDe’s standard pricing mechanism on Aave’s markets.
Disclaimer
This review was independently prepared by LlamaRisk, a community-led decentralized organization funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.
