Onboard PT-sUSDe-24SEP25

Add PT-sUSDe-24SEP25 Market to FiRM

Summary

This proposal seeks to integrate the PT-sUSDe-24SEP25 token from Pendle as a collateral asset on FiRM, Inverse Finance’s fixed-rate lending protocol. Like its predecessor (the successfully onboarded PT-sUSDe-31JUL25), PT-sUSDe-24SEP25 is a Principal Token representing the right to receive 1 USDe upon maturity—this time on September 24, 2025.

Background

Pendle Finance is a yield-trading platform that tokenizes yield-bearing assets into two components:

  • Principal Tokens (PTs), redeemable for the underlying asset at maturity;
  • Yield Tokens (YTs), which accrue the asset’s yield until expiry.

After a successful integration of PT-sUSDe-27MAR2025 on FiRM in late 2024, demand for PT-based strategies has proven to be strong. This new PT, PT-sUSDe-24SEP25, extends the maturity date and aims to offer continued opportunities for fixed-income and carry-trade strategies, leveraging FiRM’s fixed-rate borrowing.

Price Feed

Similarly to the previously onboarded PT-sUSDe-31JUL25 market, we intend to use a discount to NAV price feed. This feed accounts for the zero-coupon nature of the PT by applying a fixed discount rate to par value that exponentially converges to $1 as maturity nears. Only two main parameters—discount rate and time (block #) of maturity—must be configured. Importantly, by setting a conservative discount rate, the protocol intentionally underprices the PT relative to potential market optimism, which is safer from a protocol risk perspective.

Business Case

The 31 July PT demonstrated strong initial borrower interest. FiRM was on track to originate eight-figure debt volumes, only to see that momentum diverted when Aave pre-emptively raised its caps from $800 million to $1.3 billion. By the time our July market cleared governance, prospective borrowers had already migrated their positions to Aave’s more attractive rate environment.

With the PT-sUSDe-24SEP25, we have a clear window to regain first-mover advantage:

  • Early Listing: Propose and onboard the September PT before competing platforms such as AAVE finalize their cap increases, locking in early movers at compelling rates.
  • Seamless Rollover: Offering a continuous pathway from the 31 July PT into the September PT reassures potential borrowers on the July PT of uninterrupted exposure, reducing churn and building protocol stickiness. With rates on competitors such as AAVE and Morpho raising, it could soon be very attractive for users to migrate to FiRM to lock in cheaper rates.
  • Debt Growth: Early origination not only recaptures deferred volume from July’s market but also secures incremental debt against a high-demand tenor.

Therefore, onboarding the September PT ahead of peers is critical to reasserting FiRM’s position in the fixed-term lending landscape, maximizing debt supply, and strengthening borrower confidence in rollover availability.

Based on all the risk factors identified, we of the RWG believe the following parameter recommendations to be appropriate for the PT-sUSDe-24SEP2025 market:

Parameter Recommended Value
Supply Ceiling 50,000,000 DOLA
Daily Borrow Limit 2,000,000 DOLA
Collateral Factor 91.5%
Liquidation Factor 100%
Liquidation Incentive 5%
Minimum Debt Amount 3,000 DOLA
Oracle Discount to NAV, r = 22%

Given the early market timing and current low liquidity for September PT tokens, DOLAs supplied to the market will be restricted, at the discretion of the Fed Chair, until the Pendle PT-sUSDe-24SEP2025 market reaches sufficient liquidity. This approach balances conservative risk management during the market development phase with the flexibility to scale quickly as liquidity migrates from the expiring July PT market, while avoiding governance delays that could impact competitive positioning against Morpho and Aave markets.

For a comprehensive analysis of our recommendations and identified risk factors, please review our PT-sUSDe-25SEP2025 Risk Assessment Addendum.