Pendle Finance Expands PT Looping on Morpho with Up to 27% APY
Pendle Finance has expanded its PT Looping feature to include two new markets on Morpho, giving users a one-click path to leveraged yield on stablecoin-backed principal tokens. The addition includes PT-USDai and PT-sUSDD, with the top offering clocking in at an estimated maximum APY of 27.13%. This means that users can automate 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 two new markets offer different terms: PT-USDai has an estimated maximum looping APY of 27.13% with a maturity date of October 14, 2026, while PT-sUSDD comes in at an estimated maximum looping APY of 15.96%, maturing slightly earlier on August 26, 2026.
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.