Aave V3 on X Layer now accepts PT-USDG, Pendle Finance's fixed-yield token, as collateral, according to a governance proposal that passed in August. The integration connects Pendle's fixed-rate market infrastructure with lending on the X Layer blockchain.
PT-USDG is a Pendle Principal Token that represents a fixed yield on USDG, OKX's stablecoin. The token matures on October 29, 2026. By accepting it as collateral on Aave V3, the protocol opens a path for users to borrow against their fixed-yield positions without liquidating them, a use case that has become standard across major lending protocols as fixed-rate instruments mature in DeFi.
X Layer is OKX's Ethereum-compatible blockchain. Aave V3 launched on X Layer in February 2025 and has since accumulated roughly $23 million in total value locked, according to on-chain data aggregators. The addition of PT-USDG expands the collateral options available to users on the network, where lending supply and demand have remained modest compared to Aave's deployments on Ethereum mainnet and Arbitrum.
Pendle Finance specializes in tokenizing and trading fixed yields across multiple blockchains. The protocol has built a market for principal and yield tokens across major assets and blockchains. PT-USDG's acceptance as collateral on Aave V3 follows Pendle's growing integration across DeFi lending platforms, where its tokens are now accepted on multiple major lending protocols.
Aave's governance process for the PT-USDG listing ran from the proposal's submission in August through today's go-live, a standard approval and execution timeline for the protocol. The collateral parameters set by Aave governance determine the loan-to-value ratio, liquidation threshold, and other risk parameters for the token.
Pendle tokens have historically faced risk assessments on lending protocols due to their maturity dates and concentrated exposure in fixed-yield markets. OKX, which developed USDG, has a financial stake in the success of products built around the stablecoin, making its own protocol a natural venue for token adoption.
The move adds liquidity infrastructure around PT-USDG on X Layer at a time when fixed-yield tokens have gained traction in DeFi. If PT-USDG's borrowing volume on Aave V3 reaches the levels seen for similar Pendle tokens on Ethereum, the collateral integration could become a meaningful use case for X Layer's lending ecosystem.
