[ARFC] Onboard PT-USDG-28MAY2026 to Aave V3 Core Instance

Author: Aave Labs
Date: March 25, 2026

Summary

This ARFC proposes to onboard PT-USDG-28MAY2026 to the Aave V3 Core Instance on Ethereum.

Motivation

We propose onboarding PT-USDG-28MAY2026 to the Aave V3 Core Instance.

This PT token is attractive because the underlying asset is USDG, issued by Paxos, a highly regulated financial institution. This gives the market a dollar-denominated base asset with a straightforward reference point. A listing would allow users holding this Pendle maturity to access borrowing liquidity on Aave against that position, extending the utility of an already live market on Ethereum.

The relevant Pendle market is already live, which allows the asset to be evaluated against observable market activity rather than hypothetical demand. Where demand scales, onboarding can allow Aave to capture additional collateral usage and related borrowing activity around this maturity.

The underlying yield of PT-USDG has three components: a NIM rate pass-through, Paxos-denominated incentives, and PENDLE incentives. As a GDN member, Paxos passes yield to Pendle, which distributes it to YT holders via the Pendle Dashboard. PT holders capture this yield implicitly through the fixed discount at which PT is acquired, redeemable at par upon maturity.

Specification

• Asset: PT-USDG-28MAY2026
• Network: Ethereum
• Pendle Market: USDG May 2026 Expiry
• PT token address: 0x9db38D74a0D29380899aD354121DfB521aDb0548
• Pendle market address: 0xc5b32dba5f29f8395fb9591e1a15f23a75214f33
• Underlying asset: USDG
• Underlying asset address: 0xe343167631d89b6ffc58b88d6b7fb0228795491d
• Maturity: May 28, 2026

Risk Parameters

This proposal will be updated with initial risk parameters once provided by Risk Service Providers.

Useful Links

• Pendle market: https://app.pendle.finance/trade/markets/0xc5b32dba5f29f8395fb9591e1a15f23a75214f33/swap?view=pt&chain=ethereum&tab=book
• USDG overview: https://docs.paxos.com/guides/stablecoin/usdg

Disclaimer

Aave Labs is not directly affiliated with Pendle or Paxos and did not receive compensation for creating this proposal.

Next Steps

If the ARFC Snapshot outcome is YAE, publish an AIP with risk parameters and supporting analysis.

Copyright

Copyright and related rights waived under CC0.