Author: Aave Labs
Date: March 25, 2026
Summary
This ARFC proposes to onboard PT-USDG-28MAY2026 to the Aave V3 Core Instance on Ethereum.
Motivation
We propose onboarding PT-USDG-28MAY2026 to the Aave V3 Core Instance.
This PT token is attractive because the underlying asset is USDG, issued by Paxos, a highly regulated financial institution. This gives the market a dollar-denominated base asset with a straightforward reference point. A listing would allow users holding this Pendle maturity to access borrowing liquidity on Aave against that position, extending the utility of an already live market on Ethereum.
The relevant Pendle market is already live, which allows the asset to be evaluated against observable market activity rather than hypothetical demand. Where demand scales, onboarding can allow Aave to capture additional collateral usage and related borrowing activity around this maturity.
The underlying yield of PT-USDG has three components: a NIM rate pass-through, Paxos-denominated incentives, and PENDLE incentives. As a GDN member, Paxos passes yield to Pendle, which distributes it to YT holders via the Pendle Dashboard. PT holders capture this yield implicitly through the fixed discount at which PT is acquired, redeemable at par upon maturity.
Specification
Asset: PT-USDG-28MAY2026
Network: Ethereum
Pendle Market: USDG May 2026 Expiry
PT token address: 0x9db38D74a0D29380899aD354121DfB521aDb0548
Pendle market address: 0xc5b32dba5f29f8395fb9591e1a15f23a75214f33
Underlying asset: USDG
Underlying asset address: 0xe343167631d89b6ffc58b88d6b7fb0228795491d
Maturity: May 28, 2026
Risk Parameters
This proposal will be updated with initial risk parameters once provided by Risk Service Providers.
Useful Links
Pendle market: https://app.pendle.finance/trade/markets/0xc5b32dba5f29f8395fb9591e1a15f23a75214f33/swap?view=pt&chain=ethereum&tab=book
USDG overview: https://docs.paxos.com/guides/stablecoin/usdg
Disclaimer
Aave Labs is not directly affiliated with Pendle or Paxos and did not receive compensation for creating this proposal.
Next Steps
Publish an ARFC Snapshot to continue gathering community and Service Provider feedback.
If the ARFC Snapshot outcome is YAE, publish an AIP with risk parameters and supporting analysis.
Copyright
Copyright and related rights waived under CC0.