Aave’s Proposed USDG Collateral Rollover Carries 2.79% Implied Yield Against Higher Borrowing Rates

Aave is considering a rollover for collateral nearing maturity on its X Layer market, but the proposed February Pendle token carried a 2.79% implied yield below most stablecoin borrowing rates in an Oct. 7 snapshot.

The proposed replacement, PT-USDG-25FEB2027, would take the place of PT-USDG-29OCT2026 as the October token approaches its Oct. 29, 2026 maturity. The February token matures Feb. 25, 2027 and would have a proposed supply cap of 35 million PT.

Borrowing rates on Aave V3 X Layer in the same snapshot were 4.48% for USDT0, 4.10% for USDC and 3.67% for USDG. GHO’s rate was lower at 0.93%. The gap between the February token’s implied yield and the other borrowing rates would create negative carry for leveraged positions before incentives, fees, slippage and rate changes.

Pendle principal tokens are discounted claims on an underlying asset that can be redeemed at maturity. Their return comes from the token price moving toward the asset’s redemption value.

About 66.03 million PT-USDG-29OCT2026 units were supplied as collateral on Aave V3 X Layer in the Oct. 7 snapshot. A Sept. 9 review showed that USDT0 represented 98.7% of the reviewed debt, totaling 55.1 million USDT0. Top suppliers had a median health factor of 1.03.

The proposed rollover would list PT-USDG-25FEB2027 on Aave V3 X Layer and place both maturities in the same E-Mode. That structure would let users replace the expiring collateral while keeping their stablecoin debt through the planned flash-loan flow.

The October token’s loan-to-value ratio would fall to 0% after maturity. The February pool held approximately $1.02 million in liquidity in the Oct. 7 snapshot.

Recommended risk parameters for the February token include a 91.48% loan-to-value ratio, a 93.48% liquidation threshold and a 2.62% liquidation bonus. The proposal specifies E-Mode No. 7, while the risk recommendation calls for E-Mode No. 9, so the final configuration has not been confirmed.

OKX would build the flash-loan rollover integration separately. Reward terms for the February PT had not been confirmed. Aave’s proposed replacement therefore offers a path for maintaining collateral-backed positions, but its economics depend on changing yields, borrowing rates, liquidity and the final implementation.