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.
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.
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:
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%)
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.
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:
- Flash loan the stablecoin debt and repay the user’s position.
- Switch the user to E-Mode #9 through
setUserEModeOnBehalfOf. - Withdraw PT-USDG-29OCT2026 and swap it into PT-USDG-25FEB2027.
- Supply PT-USDG-25FEB2027 on behalf of the user.
- 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.