USDG Price Reference Update
The PT-USDG-24SEP2026 oracle, like the live PT-USDG-28MAY2026 deployment on V3 Core, prices the principal token as a zero-coupon bond against an underlying USDG/USD reference. That reference is currently a fixed feed pinned at $1.00, and USDG on the Core Hub uses the same fixed reference.
Since the March 2026 USDG onboarding assessment, on-chain USDG liquidity has deepened and diversified across multiple venues, and the Chainlink USDG/USD feed now carries Chainlink’s low market-risk categorization. USDG supply on Ethereum stands at approximately $493M as of June 2026, with the market price within a few basis points of par against the Chainlink USDG/USD feed. These conditions support market-based pricing and liquidation for USDG, consistent with the treatment of other established fiat stablecoins on Aave.
Source: LlamaRisk
We recommends replacing the fixed USDG reference with the ive Chainlink USDG/USD market feed, wrapped in a price-capped stablecoin adapter (PriceCapAdapterStable) with an upper bound of $1.04. This is the same capped-adapter standard that prices USDC, USDT, and RLUSD on Aave. The cap bounds upside oracle risk at 4% above par, while the feed remains market-responsive on the downside, enabling timely liquidations in the event of a genuine depeg, though unlikely as USDG does not have collateral status either on Aave V3 nor V4, and the PT-USDG can only borrow USDG, USDT and USDC
The recommendation applies to the USDG reference across both Aave V3 and Aave V4 Ethereum instances: the underlying USDG reserve and the PT-USDG-24SEP2026 oracle base.
| Current | Proposed | |
|---|---|---|
| USDG reference | Fixed USDG/USD, $1.00 | Chainlink USDG/USD market feed, capped |
| Upper price cap | None | $1.04 (4% above par) |