Re7 USDC Pendle Carry
Aggressive USDC vault concentrated in Pendle PT collateral markets, capturing fixed yield premium on LRT-backed PTs.
Pendle PT tokens represent a claim on a fixed yield until maturity. When LRT/LST points season is hot, PT prices imply double-digit yields. Lending USDC against PT collateral captures that premium at a stable utilization.
Pendle PT implied yields on weETH, sUSDe, and eBTC are elevated because the underlying LRT/LST yield is itself elevated. The borrower base is largely PT yield maximizers paying high spreads to lever.
Curator has run PT vaults since 2024 with a public incident history. Allocation list is restricted to PTs with active Pendle AMM liquidity and a Redstone PT-aware oracle.
Pendle PT collateral introduces oracle complexity and maturity-cliff risk. A discount event on the underlying LRT translates immediately into the PT price. The vault is non-trivial to exit if PT secondary liquidity dries up.
The honest version. Every structural failure mode this vault is exposed to, ranked by severity. If you want to know whether to invest, start here.
PT collateral is priced via a TWAP on the Pendle AMM combined with an underlying oracle. AMM liquidity shock or oracle TWAP manipulation could materially mis-price collateral.
Ethena's USDe is backed by a delta-neutral perp basis trade. A funding rate collapse or exchange counterparty failure could trigger a USDe depeg, cascading into PT-sUSDe.