Hey @ratchet , great questions.
RE demand - yes there is huge demand to borrow against this collateral. We have been speaking with some defi super users as well as our largest borrowers on FiRM, and there is huge demand for this collateral. There is a good chance of this adding an additional 8 figures of DOLA debt to FiRM. Hint - check the debank of the wallet in my recent proposal to whitelist Temple DAO to use FiRM, you’ll see over $27m of DAI debt (paying 9.5% APR borrow rate) against this exact collateral on a different lending market.
Maker lent $50m DAI to the new Morpho vault for PT-sUSDe-MAR272025 and it was fully borrowed within a matter of hours. The demand for this collateral is huge.
When the PT token reaches maturity, holders can redeem it at will for the underlying (USDe in this case). So on FiRM, the moment maturity is reached, the price feed switches to using the Chainlink USDe feed, and will sit fine as this. Users can keep their positions if they wish, but this is unlikely as it is equivalent of simply using USDe as collateral (without any Ethena sats), so we’d expect all users to repay and withdraw on or very soon after the maturity date. Just to clarify, borrowers do not need to do anything before or after the maturity. And they won’t be liquidated unless their position becomes unhealthy (caused by their debt position increasing via replenishment, or USDe losing value).
I think the opportunity of PT tokens as collateral on FiRM is absolutely huge. Allowing borrowers to earn a fixed yield with a fixed borrow cost is highly synergistic; there will be no better market in DeFi to borrow against for this asset type. This is our first venture in PT market, but I believe that the value up for grabs for Inverse is massive here, and we will likely pursue multiple other PT markets in the future.