# \[Direct-to-AIP\] Onboard PT-USDG-24SEP2026 to Aave V4 on Ethereum

**URL:** https://governance.aave.com/t/direct-to-aip-onboard-pt-usdg-24sep2026-to-aave-v4-on-ethereum/24942
**Category:** New Asset
**Created:** [May 19, 2026, 3:36pm UTC](https://governance.aave.com/t/direct-to-aip-onboard-pt-usdg-24sep2026-to-aave-v4-on-ethereum/24942 "2026-05-19T15:36:31Z")
**Posts on this page:** 1
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### Author: ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)
#### Post date: [June 19, 2026, 6:15pm UTC](https://governance.aave.com/t/direct-to-aip-onboard-pt-usdg-24sep2026-to-aave-v4-on-ethereum/24942/6 "2026-06-19T18:15:11Z")

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## **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](https://governance.aave.com/t/arfc-onboard-usdg-to-aave-v3-core-instance/23271), 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](https://docs.chain.link/data-feeds/price-feeds/addresses?network=ethereum&search=usdg&page=1). 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.

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/3/3ed9117b357176e05a1820cf0a14002963ffa2f1.png)  
_Source: LlamaRisk_

We recommends replacing the fixed USDG reference with the ive [Chainlink USDG/USD market feed](https://etherscan.io/address/0x14f0737d6b705259e521EA6E9E3506AC78dBd311#readContract), 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) |

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_[View the full topic](https://governance.aave.com/t/direct-to-aip-onboard-pt-usdg-24sep2026-to-aave-v4-on-ethereum/24942)._