Aave’s USDG rollover plan has a yield below most quoted borrowing rates
Aave’s proposed rollover would let borrowers replace October-maturing Pendle USDG principal tokens with tokens maturing in February 2027 through a flash-loan transaction, subject to separate Aave and OKX implementation. The new PT’s roughly 2.98% annualized yield is below quoted USDT0, USDC and USDG borrowing rates, though GHO is cheaper; eligible borrowing assets may differ from rate comparisons. Leverage can magnify losses when financing costs exceed PT returns, and actual outcomes depend on purchase price, changing rates, execution costs and rewards. OKX incentives are separate and current campaign terms apply to the October token, not necessarily the February replacement. The proposed Aave configuration also sets tighter risk limits, while limited pool liquidity and borrower health factors may constrain migration. Rollover convenience alone does not establish profitability.
