Summary
LlamaRisk supports listing PT-USDG-28MAY2026 on the Aave V3 Core instance. At the time of this analysis, the asset has approximately 59 days remaining until maturity, justifying the integration efforts.
The May maturity Pendle pool has accumulated ~$74M in liquidity since its deployment on February 23, 2026. This would be the first PT-USDG listing on Aave.
Assessment of PT base asset: Link
Assessment of Pendle PTs: Link
Considered PT asset maturities: PT-USDG-28MAY2026
Asset Growth
USDG (Global Dollar) is a fully reserved, US dollar-pegged stablecoin issued by Paxos Digital Singapore (regulated by the Monetary Authority of Singapore) and Paxos Issuance Europe (supervised under the EU Markets in Crypto-Assets regulation). The token is backed 1:1 by cash deposits and short-dated US Treasury instruments held in segregated reserve accounts. USDG is non-yield-bearing by design; yield is passed through to holders via the Pendle PT structure.
As of March 30, 2026, USDG circulating supply across all chains stands at ~$1.70B, up from ~$352M at launch in July 2025. On Ethereum, the total supply is ~$450M. The supply trajectory has been consistently upward, with notable acceleration since January 2026.
Source: LlamaRisk, March 30, 2026
Underlying Stability
USDG derives its value from Paxos-managed reserves consisting of cash deposits (T+0 liquid), US government securities with 3 months or less maturity, overcollateralized reverse repos, and institutional stable NAV money market funds (weighted average maturity of 60 days or less). Monthly reserve attestation reports are published by Enrome LLP, an independent Singapore-based firm.
The market price of USDG remains tightly pegged close to $1 (~$0.9999), with no material deviations observed via the Chainlink USDG/USD price feed. The maximum daily discount recorded is approximately 0.14%, representing stable peg behavior since the feed’s inception.
Source: LlamaRisk (Chainlink Price Feeds), March 30, 2026
Underlying Yield Source
USDG itself does not generate yield. For PT-USDG, the fixed yield is implied by purchasing the principal token at a discount to its notional $1 face value and redeeming it 1:1 for USDG at maturity. The discount accretes to par over time following the standard Pendle PT structure, while the floating component is stripped out to the corresponding yield token (YT).
Pendle reports the underlying USDG yield at 3.09%, which reflects the yield component distributed through the Global Dollar Network (GDN) to participating platforms.
Market Analysis
Total Supply
The SY-USDG (Standardized Yield) wrapper, which represents the total USDG deposited into the Pendle system for the May 2026 maturity, currently holds ~95.0M USDG. The wrapper saw rapid growth from near-zero in late February to over 100M by mid-March 2026, stabilizing around 95M thereafter.
Source: LlamaRisk, March 30, 2026
Pool Composition
As of March 30, 2026, the composition of the PT-USDG-28MAY2026 pool is as follows:
- Total Liquidity: ~$74,008,723
- SY-USDG: 59,666,934 (80.5%)
- PT-USDG: 14,466,900 (19.5%)
Source: LlamaRisk (Pendle), March 30, 2026
Price and Yield
The implied yield for PT-USDG-28MAY2026 reflects the market’s discount rate on the underlying USDG.
The PT implied yield has stabilized around 5.38%, while the underlying USDG yield sits at ~3.09%. This spread of ~229 bps represents the market premium for locking in a fixed rate over the 59-day period to maturity.
Source: LlamaRisk, March 30, 2026
The LP base APY currently stands at 4.90%, with a max boosted APY of 10.64% for vePENDLE (vote-escrowed PENDLE) holders. LP yields have compressed as pool TVL grew from under $1M to $74M, consistent with expected pool dynamics.
Source: LlamaRisk, March 30, 2026
As of this review (59 days to maturity), the implied yields are:
- PT-USDG-28MAY2026: ~5.38% Fixed APY
- Underlying USDG yield: ~3.09%
Yield Spread and Incentive Structure
The ~229 bps spread between the PT implied yield (5.38%) and the underlying USDG yield (3.09%) is largely attributable to YT-exclusive reward incentives distributed through Pendle’s portal incentive and co-bribe mechanisms. As of this review, the YT extra rewards are:
| Source |
Token |
APY |
| Portal incentive |
USDG |
3.10% |
| Co-bribe |
PENDLE |
0.83% |
The total YT incentive is approximately 3.93%, distributed as fixed weekly amounts (21,000 USDG and 5,077 PENDLE for the week of March 26 to April 2, 2026). These incentives increase YT demand, which in turn pushes PT pricing to a wider discount and thus a higher implied yield.
Source: LlamaRisk, March 31, 2026
Because the weekly reward amounts are fixed in absolute terms, the YT reward APR is inversely proportional to YT notional outstanding. Significant inflows could dilute the per-unit reward, compress YT demand, and narrow the PT implied yield.
Pool Parameters
The pool has the following parameters on Pendle:
PT-USDG-28MAY2026
- Maturity: 28 May 2026 (59 days remaining)
- Liquidity Yield Range: 3% - 17%
- Input Tokens: USDG
- Swap Fee APY: 0.02%
- Pendle Reward APY: 0.53%
- Aggregated LP APY: 4.90%
- Maker Fee: 0%
- Taker Fee: 0.11% (via AMM) / 0.14% (via Orderbook)
Integrated Venues
PT-USDG-28MAY2026 has been integrated on Morpho, with 3 active markets available.
Source:
Morpho, USDG Markets, March 30, 2026
Recommendations
Market Parameters Recommendation
We are aligning the risk parameter recommendations for the PT-USDG-28MAY2026 listing with @ChaosLabs. The exact listing parameters will, therefore, be presented at the AIP stage.
Price Feed Recommendation
For pricing PT-USDG-28MAY2026 on Aave, the dynamic linear discount rate oracle developed by BGD Labs is recommended. The oracle would price the PT as a zero-coupon bond against the BGD’s FixedPriceAdapter, applying a linear discount that decays to par at maturity.
Disclaimer
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk did not receive compensation from the protocol(s) or their affiliated entities for this work. The information should not be construed as legal, financial, tax, or professional advice.
