[Direct-to-AIP] Onboard PT-USDG-25FEB2027 on X Layer

Governance New Asset
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title: [Direct-To-AIP] Onboard PT-USDG-25FEB2027 on X Layer

author: @TokenLogic

created: 2026-09-26

Summary

We propose listing PT-USDG-25FEB2027 on Aave V3 X Layer and adding it as collateral to E-Mode #7, alongside PT-USDG-29OCT2026.

Both maturities would be available in the same E-Mode so OKX can build a rollover flow that lets users move to the new PT in a single transaction while keeping their stablecoin borrowing position.

After PT-USDG-29OCT2026 matures on 29 October 2026, its LTV will be reduced to 0%.

Motivation

Overview

PT-USDG-29OCT2026 matures on 29 October 2026. Pendle has launched a new USDG PT maturing on 25 February 2027, which would let users continue using fixed-yield USDG positions as collateral on Aave.

Most PT-USDG positions on X Layer borrow stablecoins such as USDT0 against their PT collateral. To move to the new maturity manually, users would need to repay their debt, withdraw the old PT, buy the new PT and borrow again.

We propose keeping both maturities in E-Mode #7 during the rollover period to support this migration.

Rationale for the Rollover

OKX plans to build a rollover flow using flash loans. In one transaction, it would repay the user’s stablecoin debt, move the collateral from PT-USDG-29OCT2026 to PT-USDG-25FEB2027, borrow again and repay the flash loan.

This proposal covers the Aave listing and E-Mode configuration needed for that flow. OKX would develop the rollover integration separately.

Specification

This proposal follows the Direct-to-AIP precedent for PT-USDG on X Layer.

We propose listing the following asset on Aave V3 X Layer.

Field Value
Asset PT-USDG-25FEB2027
Network X Layer
Underlying Asset USDG
Maturity 25 February 2027
PT Token Address 0x5ea1f184af5ced57725213d8267b5c4c834557d4
Pendle Market / LP Address 0xb70be417526707c8ebf5f1a79e4876557639b01d
SY Token Address 0x1f336f899f77b084133bc14a81170837ed618d1b
YT Token Address 0x5b4308e22ab59aae80cbf37089c528a125d2a34d
Underlying USDG Address 0x4ae46a509f6b1d9056937ba4500cb143933d2dc8
E-Mode #7

Proposed Market Configuration

We propose using the initial listing parameters recommended by LlamaRisk for PT-USDG-29OCT2026, including a supply cap of 35,000,000 PT.

Parameter Value
Asset PT-USDG-25FEB2027
Borrowable No
Collateral Enabled No
Supply Cap 35,000,000
Borrow Cap -
Debt Ceiling -
LTV -
LT -
Liquidation Bonus -
Liquidation Protocol Fee 10%
E-Mode Category #7

Like the existing PT-USDG reserve, the new PT would only be usable as collateral in E-Mode #7. Aave’s Risk Service Providers will review the final listing parameters.

E-Mode Configuration

E-Mode #7

Parameter PT-USDG-25FEB2027 PT-USDG-29OCT2026 USDT0 GHO USDC
Collateral Yes Yes No No No
Borrowable No No Yes Yes Yes
Max LTV 92.66% Existing configuration* - - -
Liquidation Threshold 94.66% Existing configuration* - - -
Liquidation Bonus 2.34% Existing configuration* - - -
  • PT-USDG-29OCT2026 will keep its existing parameters during the migration period. Its LTV will be reduced to 0% after maturity on 29 October 2026.

The proposed LTV, liquidation threshold and liquidation bonus follow LlamaRisk’s PT-USDG Stablecoins E-Mode recommendation for the October maturity. Aave’s Risk Service Providers will review their suitability for PT-USDG-25FEB2027.

Oracle

We propose using the Dynamic Linear Discount Rate Oracle framework already used for PT-USDG-29OCT2026 on X Layer, with the same discount-rate parameters recommended by LlamaRisk.

The oracle applies a discount to the underlying USDG value that decreases as the PT approaches maturity.

Parameter PT-USDG-25FEB2027
Oracle Dynamic Linear Discount Rate Oracle
Underlying USDG
initialDiscountRatePerYear 3.106%
maxDiscountRatePerYear 11.080%

The new maturity requires a dedicated oracle deployment. Its address will be added once deployed, with the final configuration reviewed by Llamarisk and Aave Labs

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. Using the Direct-to-AIP process, incorporate feedback from the Risk Service Provider.
  3. Escalate this proposal to the AIP Voting stage.

Copyright

Copyright and related rights waived via CC0.

[ARFC] Upgrade PT Risk Oracle to Protocol-Owned Infrastructure on CRE
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Summary

LlamaRisk supports listing PT-USDG-25FEB2027 on Aave V3 X Layer. At the time of this analysis, the asset has 141 days remaining until maturity. The 25FEB2027 Pendle pool holds approximately $1.02M in available liquidity, most of which arrived on October 6, 2026, following the pool’s deployment on September 25, 2026.

The prior maturity, PT-USDG-29OCT2026, is live on Aave V3 X Layer with 66.03M PT supplied as collateral, and matures on October 29, 2026, 22 days from this review. PT-USDG-25FEB2027 is the rollover destination for that position.

Assessment of PT base asset: Link

Assessment of Pendle PTs: Link

Considered PT asset maturities: PT-USDG-25FEB2027

Asset State

Asset Growth

USDG supply on X Layer stands at approximately 1.42B as of October 7, 2026, down from a peak of 1.97B on August 13, 2026. The bulk of the expansion occurred between late April and mid-May 2026, with supply increasing from approximately 250M to more than 1.35B. Across all chains, total USDG supply currently stands at approximately 3.09B, of which X Layer holds 46.1%, followed by Robinhood Chain at 709M, Solana at 628M, and Ethereum at 264M.

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image2077×1104 139 KB

Source: LlamaRisk, October 7, 2026

Underlying Stability

USDG is issued by Paxos Digital Singapore and Paxos Issuance Europe and is backed 1:1 by cash deposits, short-dated US Treasury instruments, overcollateralized reverse repos, and institutional stable NAV money market funds held in segregated reserve accounts. KPMG LLP, a Big Four accounting firm, publishes monthly reserve attestation reports.

The market price of USDG is $1.0000, in line with the USD peg. The Chainlink USDG/USD feed on X Layer has published 360 rounds since October 16, 2025 and has averaged $0.9999 over that period. A maximum drawdown of 5.2 basis points (bps) was observed on May 15, 2026, and the largest upside deviation was 4.0 bps.

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image2087×1104 168 KB

Source: LlamaRisk, October 7, 2026

Underlying Yield Source

USDG is non-yield-bearing by design. Yield is passed through to holders via the Pendle PT structure or through Global Dollar Network (GDN) integrations. For PT-USDG, the fixed yield is implied by purchasing the principal token at a discount to its notional 1 USDG face value and redeeming it at maturity for USDG at 1:1. The discount accretes to par over time following the standard Pendle PT structure, while the floating component is stripped to the corresponding yield token (YT).

The current underlying USDG yield reported by Pendle is 3.3%, reflecting the yield component distributed through GDN to participating platforms.

Market Analysis

Total Supply

The PT-USDG-25FEB2027 maturity pool was deployed on September 25, 2026 and seeded the same day with 35,197 SY-USDG and 14,805 PT, approximately $50K in liquidity, which it held until October 6, 2026. Liquidity rose to approximately $860K over October 6 and to approximately $1.02M by October 7. The pool now holds 831,300 SY-USDG. 186,629 PT-USDG-25FEB2027 are outstanding, effectively all of it held inside the AMM, and the market has recorded approximately $31.9K in trading volume since deployment.

PT-USDG-25FEB2027 Liquidity Growth:

image
image2072×1096 128 KB

Source: LlamaRisk, October 7, 2026

Pool Composition

As of October 7, 2026, the composition of the PT-USDG pool is as follows:

  • Total Liquidity: $1,015,962
  • SY USDG: $831,300 (81.82%)
  • PT USDG: $184,662 (18.18%)

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Source: LlamaRisk, October 7, 2026

Price and Yield

The implied yield for PT-USDG reflects the market’s discount rate on the underlying asset. The PT implied yield is currently 2.79%, while the LP APY is approximately 31.2%. The LP APY reached 336.6% on October 6, 2026, while the pool held approximately $50K, then compressed as liquidity arrived over the following hours.

image
image2080×1098 147 KB

Source: LlamaRisk, October 7, 2026

As of October 7, 2026, the PT-USDG implied yield of 2.79% sits below the 3.3% underlying USDG yield and below most Aave V3 X Layer stablecoin borrow rates, which stand at 4.48% for USDT0, 4.10% for USDC, and 3.67% for USDG. Only GHO, at 0.93%, borrows below the PT rate. On on-chain yields alone, a looping position funded with USDT0, USDC, or USDG therefore carries negative carry.

OKX incentivizes the position externally through its OKX Exchange Earn program, and these rewards keep the loop profitable for participating users. Because the incentives sit outside Aave, the profitability of the loop depends on OKX continuing the program, and its end would likely prompt loopers to unwind. The borrow rates are variable, and the implied yield may move as the pool continues to accumulate liquidity, so the spread can change over the life of the position.

Pool Parameters

The PT-USDG pool has the following parameters on Pendle:

  • Maturity: February 25, 2027
  • Liquidity Yield Range: 2% - 7%
  • Input Tokens: USDG
  • Maker Fee: 0%
  • Taker Fee: 0.05% (via AMM) / 0.05% (via Orderbook)

Maturities

PT-USDG-29OCT2026 is live on Pendle’s X Layer market and approaches expiry on October 29, 2026. PT-USDG-25FEB2027 is the only other PT-USDG maturity on X Layer, and will serve as the rollover destination for holders exiting the October maturity.

Integrated Venues

PT-USDG-25FEB2027 has not yet been integrated into other lending venues due to the pool’s recency. Aave would be the first venue to offer lending against this collateral asset.

Recommendations

Specification

Parameter Value
Asset PT-USDG-25FEB2027
Borrowable No
Collateral Enabled No
Supply Cap 35,000,000
Borrow Cap -
LTV -
LT -
Liquidation Bonus -
Liquidation Protocol Fee 10.00%
E-Mode Category PT-USDG-25FEB2027 Stablecoins #9

Linear Discount Rate Oracle

Parameter Value
initialDiscountRatePerYear 2.953%
maxDiscountRatePerYear 7.910%

PT-USDG-25FEB2027 Stablecoins E-Mode #9

Parameter Value
Isolated False*
LTV 91.48%
LT 93.48%
Liquidation Bonus 2.62%
Asset PT-USDG-25FEB2027 PT-USDG-29OCT2026 USDT0 GHO USDC
Collateral Yes Yes No No No
Borrowable No No Yes Yes Yes

* as per rationale in [ARFC] Unified Handling of the Isolated Flag in Aave V3.7 E-Modes

Rollover from PT-USDG-29OCT2026

PT-USDG-25FEB2027 is listed in a new E-Mode #9 rather than in the existing E-Mode #7, since an E-Mode applies a single LT to all of its collateral assets and the 94.66% LT of E-Mode #7 sits above the 93.48% we recommend for the new maturity. PT-USDG-29OCT2026 is added as collateral to E-Mode #9 at the same parameters, which lets existing positions move from E-Mode #7 to E-Mode #9 without closing.

OKX can execute the rollover in a single transaction once the user approves its contract through approvePositionManager, together with the credit delegation and aToken approval the flash loan flow already requires. The transaction proceeds as follows:

  1. Flash loan the stablecoin debt and repay the user’s position.
  2. Switch the user to E-Mode #9 through setUserEModeOnBehalfOf.
  3. Withdraw PT-USDG-29OCT2026 and swap it into PT-USDG-25FEB2027.
  4. Supply PT-USDG-25FEB2027 on behalf of the user.
  5. Borrow on behalf of the user and repay the flash loan.

Price Feed Recommendation

For pricing the PT-USDG-25FEB2027 on Aave, the dynamic linear discount rate oracle is recommended.

The oracle treats the PT as a zero-coupon claim that rises to par in a straight line as maturity approaches, priced from a capped USDG/USD Chainlink feed. The maxDiscountRatePerYear parameter caps the discount, so the quoted price can never fall below the AMM’s lowest quoted price. The initialDiscountRatePerYear and maxDiscountRatePerYear values are listed in the Linear Discount Rate Oracle table above.

The discount numbers come from LlamaRisk’s dynamic PT risk-parameter methodology.

Disclaimer

This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.

The information provided should not be construed as legal, financial, tax, or professional advice.

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A data point from another maturity, in case it helps size the rollover. Pendle’s USDai and sUSDai pools on Arbitrum matured on 15 October. The October pools held about $60M seven hours after expiry and about $5M a day later. Over the same day the February pools on the same assets went from $4.1M to $6.1M.

What I could not see from the pools is where the rest went. Does the OKX rollover flow give you a view of what share of the 66M is likely to move to 25FEB2027 before 29 October?

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A follow-up on the October PT, read on X Layer this morning. The aToken holds about 42.7M PT-USDG-29OCT2026, down from the 66.03M in the assessment above and about 72.3M on 25 September. On 16 October most of it sat in E-Mode 7 loops with health factors between 1.01 and 1.23. With ten days to maturity the October Pendle pool holds about $0.11M, and PT-USDG-25FEB2027 isn’t in the reserve list yet. Is the expected path for these loops to unwind at maturity, or to roll once the February PT is listed?