Aave has listed PT-AUSD-17DEC2026, a Pendle principal token tied to the AUSD stablecoin, on its V3 deployment on Monad. The token matures on December 17, 2026, and the reserve has reached its 30 million-token supply cap with $29.67 million supplied.
The listing provides continuity for users of the platform's earlier principal token, PT-AUSD-8OCT2026, which matures on October 8, 2026. The new reserve copies the risk settings from its predecessor, allowing users to post the principal token as collateral within a stablecoin-focused eMode with a 93% loan-to-value ratio and 95% liquidation threshold. Users cannot borrow the principal token directly.
Background on Fixed-Maturity Collateral
A principal token represents a claim on an underlying asset with a fixed maturity date. The structure allows users to post the token as collateral and borrow stablecoins without unwinding positions as the token expires. This strategy, known as looping, lets users amplify exposure to yield by repeatedly posting collateral and borrowing against it.
The proposal to list the December token was submitted on September 25, 2026, with LlamaRisk providing risk recommendations to Aave.
Precedent from October Market
The earlier PT-AUSD-8OCT2026 market launched with a 20 million-token supply cap in October 2026. That cap was eventually raised to 80 million tokens. By October 2, 2026, the market had attracted 67.4 million tokens, roughly $67 million, supplied as collateral ahead of maturity.
Borrowing activity on Aave's Monad deployment reflected strong demand. AUSD credit saw active loans climb 113% to $8.7 million in the 15 days leading into early October, while deposits more than doubled to $11.2 million over the same period.
Risk Considerations
The high loan-to-value ratio creates efficiency for leverage strategies but leaves limited margin for price deviations. Liquidations in looped positions could cascade if many users are positioned near the same liquidation threshold. The restriction on direct borrowing of the principal token limits the asset to a collateral-only role, which mitigates some potential market stresses.
