Pendle Finance Expands PT Looping to Morpho with High-Yield Stablecoin Options

Pendle Finance has expanded its PT Looping feature to include two new markets on Morpho, allowing users to access leveraged yield on stablecoin-backed principal tokens with ease.

The addition of PT-USDai and PT-sUSDD brings the total number of supported markets to three, including Aave and Euler. The PT Looping feature automates a cycle of supplying a principal token as collateral, borrowing a stablecoin against it, and swapping that stablecoin back into the same PT.

The two new markets offer an estimated maximum APY of 27.13% for PT-USDai and 15.96% for PT-sUSDD, with maturity dates of October 14, 2026, and August 26, 2026, respectively. This represents a top-end estimate, as actual realized yields will depend on the leverage ratio and borrowing costs at the time of entry.

Pendle's PT Looping feature is designed to reduce risk by automating the loop process in one click, removing human error from the equation. However, leveraged positions still carry liquidation exposure if the underlying asset depegs or if borrowing rates shift materially before maturity.