Aave’s USDG rollover plan has a yield below most quoted borrowing rates

Aave’s proposed USDG rollover would let borrowers carry their stablecoin debt into a new fixed-yield USDG position, but the replacement collateral currently yields less than three quoted borrowing rates. That leaves leverage and separately administered rewards central to whether extending the trade makes financial sense. The proposal concerns Pendle principal tokens, or PTs, on the X Layer network: holders of the token maturing Oct. 29 would move into a replacement maturing Feb. 25, 2027. In its Oct. 8 assessment , risk provider LlamaRisk said the February token’s on-chain yield alone fell short of USDT0, USDC and USDG borrowing costs.

Source: CryptoSlate