Aave Lists December AUSD PT on Monad With 93% Borrowing Limit

Aave’s V3 market on Monad now accepts Pendle’s $AUSD principal token maturing Dec. 17, 2026 as collateral, letting borrowers take stablecoin loans worth up to 93% of its oracle valuation. The listing provides a rollover destination for holders of the October $AUSD principal token as that earlier maturity expires.

The new reserve has already filled its 30 million-token supply cap. Aave’s interface displayed $29.67 million supplied on Oct. 8, alongside a 93% maximum loan-to-value ratio and 95% liquidation threshold. Those limits leave borrowers taking the maximum loan with a narrow buffer against adverse collateral valuations or rising debt.

Users must select the token’s dedicated E-Mode—a category with higher borrowing limits—to use it as collateral. They can borrow USDT0, USDC, GHO, USDe or mUSD against it; the principal token itself cannot be borrowed. The change extends an existing lending strategy: LlamaRisk’s Oct. 8 review reported about 44.74 million tokens still supplied in the October reserve at its maturity.

Governance proposal 525, submitted by TokenLogic, is marked executed. Its Monad execution transaction succeeded on Oct. 8 and set the supply cap and E-Mode parameters, including a 2.62% liquidation bonus.

A Moving Collateral Value

The new token’s onchain oracle carries the configured initial annual discount rate of 5.745%, with a maximum of 8.804%. This is a pricing input, not the interest rate borrowers pay. The linear model values the PT below its underlying $AUSD redemption value before maturity, with the discount shrinking as expiry approaches.

“LlamaGuard agents will update the discount rate and E-Mode risk parameters through maturity,” LlamaRisk said in its launch announcement.

Under LlamaRisk’s published framework, discount-rate updates change the oracle’s valuation, while E-Mode updates can change loan-to-value limits, liquidation thresholds and liquidation bonuses. Updates pass through governance-controlled risk-agent permissions and safety checks. Aave has already activated this approach on Plasma.

For borrowers, a higher discount rate lowers the PT’s collateral valuation. A lower valuation or liquidation threshold reduces the account’s health factor—the ratio of threshold-adjusted collateral to debt. Aave permits liquidation below a health factor of one, so a position can move closer to liquidation even without the borrower taking another loan. The liquidation bonus is the extra collateral a liquidator receives for repaying debt.

At the Dec. 17 maturity, each PT redeems for one $AUSD, according to LlamaRisk’s asset assessment. That principal claim is independent of whether Agora continues the yield rebate supporting the Pendle market.