Pendle Finance adds PT-USDai and PT-sUSDD on Morpho with up to 27% APY

Pendle Finance has expanded its PT Looping feature to include two new markets on Morpho: PT-USDai and PT-sUSDD. The addition, announced on August 4, 2026, gives users a one-click path to leveraged yield on stablecoin-backed principal tokens, with the top offering clocking in at an estimated maximum APY of 27.13%.

For context on what that number means in practice: PT Looping automates a cycle of supplying a principal token as collateral, borrowing a stablecoin against it, and swapping that stablecoin back into the same PT to repeat the process. The one-click version handles the whole loop in a single operation.

The two new markets, explained

PT-USDai carries the headline figure: an estimated maximum looping APY of 27.13%, with a maturity date of October 14, 2026. PT-sUSDD comes in at an estimated maximum looping APY of 15.96%, maturing slightly earlier on August 26, 2026.

Because PT tokens have a predictable redemption value at maturity, lenders on Morpho can price the collateral risk with more confidence than they could with a volatile token whose floor is essentially unknown. Borrow against something you know will be worth a specific amount on a specific date, and the liquidation calculus becomes considerably less nerve-wracking.

Pendle’s PT Looping feature already supported markets on Aave and Euler before this expansion. Adding Morpho broadens the range of lending venues available to PT holders who want to put their tokens to work rather than simply hold to maturity.

Why PT Looping is a bigger deal than it sounds

One-click automation changes the risk profile in a meaningful way. The transaction either executes cleanly at the target parameters or it doesn’t go through. Users set their leverage level upfront and the protocol handles the rest, removing the window for human error that opens up when someone is manually executing five steps under time pressure.

Leveraged positions still carry liquidation exposure if the underlying asset depegs or if borrowing rates shift materially before maturity. The predictability of PT tokens reduces that exposure compared to volatile collateral, but it does not eliminate it.

The 27.13% figure is also the estimated maximum looping APY, which means it represents the top end of the range at a given leverage multiple. Actual realized yields will depend on the leverage ratio a user selects, the borrowing costs on Morpho at the time of entry, and any changes to those rates over the life of the position.

Where this fits in Pendle’s broader trajectory

Pendle’s core product splits yield-bearing tokens into two components: a Principal Token, which represents the underlying asset redeemable at maturity, and a Yield Token, which captures the variable income stream in the interim. PT Looping is essentially a second layer on top of that architecture, letting users amplify the fixed-yield side of the equation through leverage rather than simply holding a PT to maturity.

Expanding to Morpho specifically is notable because Morpho has built a reputation as a flexible, permissionless lending layer that allows for more granular market configurations than monolithic lending protocols. Pendle can create a PT-specific market with parameters suited to the fixed-maturity collateral structure, rather than shoehorning PTs into a lending pool designed for perpetual assets.

The combination of Aave, Euler, and now Morpho as supported venues gives PT holders three distinct options for where to execute their looping strategy, each with its own interest rate dynamics and risk parameters.