Aave

[TEMP CHECK] Onboard Pendle PT tokens to Aave V3 Core Instance

Author: ACI

Date: 2024-12-10

Summary

This TEMP CHECK proposes to onboard Pendle PT tokens to Aave V3 Core Instance.

Motivation

Pendle allows users to split yield bearing tokens into principal (PT) and yield (YT) components. This opens the door to trading yield for the growing number of yield bearing tokens, and gives users additional options for yield farming strategies. A notable feature of the PT tokens is that at the maturity date, the value of the PT equals the value of the underlying asset and can be redeemed for the underlying. This means PT tokens, which can be bought at a discount within Pendle pools, represent the fixed rate part of a Pendle asset pair.

Pendle has seen extremely high growth this year, with current TVL of circa $4.5 billion. Along with this growth has come the desire for yield traders to borrow against their Pendle PT tokens. This represents a multi-billion dollar growth opportunity for Aave, without a large increase in risk if PT tokens are onboarded for already listed assets such as sUSDe.

We propose listing an initial PT token as a test use case to see user demand and work through the full integration of a PT token:

• PT-sUSDE-29MAY2025

In future we propose listing sUSDe and USDe PT tokens for new maturities as required.

Specification

PT-sUSDE-29MAY2025: 0xb7de5dfcb74d25c2f21841fbd6230355c50d9308

Risk Parameters

Risk parameters will be provided by Risk Service Providers in the ARFC discussion thread.

Useful Links

https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT

Disclaimer

ACI is not directly affiliated with Pendle and did not receive compensation for creation this proposal. Some ACI employees may hold Pendle tokens.

Next Steps

1. Collect community & service providers feedback on this TEMP CHECK.
2. Escalate the proposal to TEMP CHECK Snapshot.
3. Publish ARFC to gather community and Service Providers feedback.
4. Escalate the proposal to ARFC snapshot stage if feedback is positive.
5. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived under CCO