[ARFC] Onboard PT-AUSD-8OCT2026 to Aave V3 Monad Instance


title: [ARFC] Onboard PT-AUSD-8OCT2026 to Aave V3 Monad Instance
author: @TokenLogic
created: 2026-07-16


Summary

This ARFC proposes onboarding PT-AUSD-8OCT2026, the PT for Agora’s AUSD to the Aave V3 instance on Monad.

Motivation

Overview

Aave went live on Monad in July 2026 and crossed 300M USD in deposits, with AUSD onboarded as one of the instance’s core stablecoin reserves. AUSD is Agora’s institutional digital dollar, minted 1:1 against USD and backed by cash, short-dated U.S. Treasury bills and overnight reverse repurchase agreements. The reserve fund is managed by VanEck, with State Street acting as cash custodian and fund administrator, and reserves are independently attested by Grant Thornton. AUSD is currently the largest stablecoin on Monad, and Pendle operates a liquid AUSD market on the chain.

Rationale for Onboarding PT-AUSD-8OCT2026

Onboarding this maturity would enable users to use their fixed-yield PT-AUSD positions as collateral within the same Aave market that already supports AUSD, further enhancing the utility and capital efficiency of the stablecoin on Aave’s latest deployment.

As a short-dated, AUSD-backed asset, PT-AUSD offers a collateral profile that is well aligned with Aave’s risk framework, making it a strong candidate for inclusion on Monad.

Selected market data at the time of submission:

Metric Value
Underlying asset AUSD (Agora)
Maturity 8 October 2026
Residual maturity at submission Approximately 85 days
PT implied APY Approximately 6.5%
Pendle market liquidity Approximately 5.75M USD
PT total value locked Approximately 67.5M USD
7-day trading volume Approximately 8.06M USD

The case for onboarding rests on the following points:

  1. Incentives from Agora. Agora has committed some incentives towards that Pendle market we can see the current implied rate around 6.5% APR being subsidized with incentives.
  2. Underlying already onboarded. AUSD is already a live reserve on the Aave Monad instance, so the market already prices AUSD and the collateral pairing is natural: PT-AUSD supplied as collateral against AUSD or other stablecoin debt within a dedicated E-Mode category.
  3. Ecosystem growth. Enabling PT-AUSD as collateral supports stablecoin leverage and borrowing demand on a nascent instance, aligned with the growth objectives set out in the Aave Protocol v3.7 Monad deployment.

Specification

The following asset would be onboarded to the Aave V3 instance on Monad.

Field Value
Asset PT-AUSD-8OCT2026
Network Monad (chainId 143)
PT token address 0x9fc74f8ed616b5baf52a170caa97d6d3898602d1
Pendle market address 0x6f99cf00ee7290ae78a072bb6910ef72d1129fe7
SY token address 0xba3d60f5000f472aef947fb8020a3e6319f9a0b7
YT token address 0xeddee9c0b56248d70a9bfdd103f8bd97c35dfd89
Underlying asset (AUSD) 0x00000000efe302beaa2b3e6e1b18d08d69a9012a
Maturity 8 October 2026

Oracle

Price Feed Recommendation

For pricing PT-AUSD-8OCT2026 on Aave, the dynamic linear discount rate oracle is recommended. The same oracle template currently in use for Pendle PT assets on Aave V3, can be reused for this deployment.

The oracle prices the PT as a zero-coupon bond against a capped underlying Chainlink reference (AUSD/USD fixed at 1 USD), applying a linear discount that decays to par at maturity. The discount rate is bounded above by the maxDiscountRatePerYear parameter, providing a deterministic price floor against adverse market dislocations.

Discount Rate Parameters

Parameter PT-AUSD-8OCT2026
initialDiscountRatePerYear To be provided by Risk Service Providers
maxDiscountRatePerYear To be provided by Risk Service Providers

Risk Parameters

Per Aave’s asset onboarding framework, all risk parameters for PT-AUSD-8OCT2026 will be provided by the Risk Service Provider, LlamaRisk and appended to this proposal prior to escalation to the Snapshot stage.

An indicative market structure is shown below:

Parameter Value
Asset PT-AUSD-8OCT2026
Borrowable No
Collateral Enabled No
Supply Cap 20,000,000
Borrow Cap -
Debt Ceiling -
LTV -
LT -
Liquidation Penalty -
Liquidation Protocol Fee -
E-Mode Category PT Agora Stablecoins

eMode #5 - PT Agora Stablecoins

Parameter Value Value Value Value
Asset PT-AUSD-8OCT2026 USDT0 USDC GHO
Collateral Yes No No No
Borrowable No Yes Yes Yes
Max LTV 90.00% - - -
Liquidation Threshold 92.00% - - -
Liquidation Bonus 4.00% - - -

Given the current on-chain liquidity of the PT-AUSD market on Monad (approximately 5.75M USD), a conservative initial supply cap and a collateral configuration consistent with the treatment of comparable short-dated Pendle PT stablecoin assets on other Aave instances is anticipated.

Disclaimer

TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100086 and the KPI as outlined in this publication. The scope of this engagement is available via this forum proposal.

TokenLogic supports and maintains an independent delegate voting platform within the Aave community.

TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission.

Next Steps

  1. Gather feedback from the community.
  2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
  3. If Snapshot outcome is YAE, escalate this proposal to the AIP stage.

Copyright

Copyright and related rights waived via CC0.

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