Aave has integrated a new Pendle principal token, PT-AUSD-17DEC2026, into its V3 protocol on the Monad network. The reserve reached its supply cap of 30 million tokens almost immediately, with $29.67 million in assets supplied. This listing follows a proposal submitted on September 25, 2026, which received a recommendation from LlamaRisk.
The new asset serves as collateral for a stablecoin-focused eMode, where the loan-to-value ratio is set at 93% and the liquidation threshold at 95%. Users are prohibited from borrowing the principal token directly. This structure allows users to roll over positions from the previous PT-AUSD-8OCT2026 market, which matures on October 8, 2026, without closing existing loans.
The predecessor market, PT-AUSD-8OCT2026, saw its supply cap increase from 20 million to 80 million tokens, with 67.4 million tokens supplied by October 2, 2026. Additionally, Aave’s Monad deployment recorded a 113% increase in active AUSD loans to $8.7 million, while deposits reached $11.2 million in the 15 days leading up to early October.
The listing aims to maintain capital within the DeFi ecosystem by enabling leveraged looping strategies. However, the high loan-to-value ratio presents risks, as price deviations could lead to cascading liquidations. Governance may consider raising the supply cap for the December token, following the precedent set by the October market.
