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

What happened

Aave’s proposed USDG rollover would let borrowers carry their stablecoin (a digital token meant to hold a fixed value, usually one dollar) debt into a new fixed-yield USDG position, but the replacement collateral currently yields less than three quoted borrowing rates. February PT yield trails three quoted funding rates; GHO was cheaper in the Oct.

7 snapshot, and replacement-token rewards remain unconfirmed. 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. 8 assessment , risk provider LlamaRisk said the February token’s on-chain (recorded on the blockchain itself rather than beside it) yield alone fell short of USDT0, USDC (Circle’s dollar-pegged token) and USDG borrowing costs.