Add PT-sUSDe-31JUL25 Market to FiRM

Forum Post: https://forum.inverse.finance/t/add-pt-susde-31jul25-market-to-firm/573

Summary

This proposal seeks to integrate the PT-sUSDe-31JUL25 token from Pendle as a collateral asset on FiRM, Inverse Finance’s fixed-rate lending protocol. Like its predecessor (the successfully onboarded PT-sUSDe-29MAY2025), PT-sUSDe-31JUL25 is a Principal Token representing the right to receive 1 USDe upon maturity—this time on July 31, 2025.

Background

Pendle Finance is a yield-trading platform that tokenizes yield-bearing assets into two components:

• Principal Tokens (PTs), redeemable for the underlying asset at maturity;
• Yield Tokens (YTs), which accrue the asset’s yield until expiry.

After a successful integration of PT-sUSDe-27MAR2025 on FiRM in late 2024, demand for PT-based strategies has proven to be strong. This new PT, PT-sUSDe-29MAY2025, extends the maturity date and aims to offer continued opportunities for fixed-income and carry-trade strategies, leveraging FiRM’s fixed-rate borrowing.

Price Feed

Similarly to the previously onboarded PT-sUSDe-29MAY2025 market, we intend to use a discount to NAV price feed. This feed accounts for the zero-coupon nature of the PT by applying a fixed discount rate to par value that exponentially converges to $1 as maturity nears. Only two main parameters—discount rate and time (block #) of maturity—must be configured. Importantly, by setting a conservative discount rate, the protocol intentionally underprices the PT relative to potential market optimism, which is safer from a protocol risk perspective.

Business Case

The 31st July sUSDe Pendle market has proven very popular on over lending markets, given its YT represents the last opportunity to earn 30x Ethena points, with the preceding 25th September sUSDe market providing 25x Ethena points. Over 43m PT-sUSDE-31JUL2025 tokens are used as collateral on Morpho, and 800m on Aave v3, demonstrating extremely strong market demand.

Temple DAO, a top FiRM debt holder and INV holder, holds a sizable PT-sUSDe-31JUL2025 position on Morpho and has indicated a desire to move some of this position to FiRM to benefit from the reliability of fixed rates. This represents a clear demand driver to scale FiRM's debt and revenue to new highs.

Risk Assessment and Parameter Recommendation

Please see the Risk Assessment carried out by the RWG for PT-sUSDe-31JUL25 Collateral on FiRM here.

With the following parameter recommendation:

These parameters are accepted and will be pushed forward in this proposal.