Aave and Pendle may have found a way to keep yield capital from ever leaving DeFi
Summary
About $67.4 million of Pendle PT-AUSD tokens supplied as collateral on Aave’s Monad market mature Oct. 8. Aave users may roll those positions into a proposed Dec. 17 PT-AUSD market, preserving borrowing capacity, but its current liquidity is far below the expiring market’s scale. Aave’s risk advisers proposed an initial 30 million-token cap, which could rise if demand, liquidity and borrower health support it. The December token’s yield currently exceeds rates on several stablecoin loans, though spreads and incentives can change. The rollover will test whether fixed-yield assets can sustain a cycle of collateralized borrowing across successive maturities.
