Pendle Integration Adds Live Rate Inputs to Aave Risk Settings

Pendle announced an integration that will let Aave use Pendle’s implied rates as live inputs for risk parameters tied to collateral, linking yield-market rates with the lending protocol’s risk settings.

Aave is a decentralized lending protocol for borrowing and lending crypto. Pendle is a decentralized finance protocol that tokenizes yield-bearing assets. The integration brings Pendle’s implied rates into Aave’s collateral-setting process.

The rates are intended to help inform collateral settings based on market conditions. Those settings remain within governance-set limits.