Aave Weighs December Pendle Token for Monad Collateral Rollover

Aave is weighing a December-maturity Pendle token as collateral on its Monad market, which could give borrowers a path to maintain collateral-backed positions as an October token approaches redemption.

Users had supplied 67.4 million PT-AUSD-8OCT2026 tokens as collateral on Aave V3’s Monad market as of Oct. 2. The token becomes redeemable for one AUSD at maturity on Oct. 8, when its fixed-yield accrual ends.

TokenLogic’s Sept. 25 proposal would add PT-AUSD-17DEC2026, which matures Dec. 17, with an initial supply cap of 20 million tokens. The token would qualify as collateral only through a dedicated stablecoin eMode, and borrowing the token itself would be disabled.

LlamaRisk supported the listing and recommended a 30 million-token starting cap. It also said up to 67.4 million tokens could migrate from the October position. The proposal does not establish a final live limit.

As of Oct. 2, the December pool held $1.61 million in liquidity and had 904,717 PT outstanding; trading volume since launch totaled $44,000. That liquidity snapshot is substantially smaller than the October collateral position, leaving the market’s ability to handle significant rollover demand unresolved.

The December token’s implied yield was 5.64% on Oct. 2, or 6.64% with a temporary 1 percentage-point campaign boost. Aave’s listed variable borrowing rates were 4.28% for mUSD, 4.64% for GHO, 5.10% for USDT0, 6.09% for USDC and 6.82% for USDe. Those figures are a snapshot; yields, rates and incentives can change.

Maturity alone does not trigger liquidation. Borrowers can redeem the October token, repay debt, add other collateral or move into a later-maturity token. Aave’s approval of the listing and the December market’s capacity for rollover demand remain open questions.