In a move that the Multiverse of Finance would likely adore if it could clap politely, Euler Finance announced on October 3, 2025, that PT-tUSDe is stepping onto the collateral stage. A brief product-update blurb from their official X account confirmed the plan, as if announcing a new kettle may boil water or not-but with more math and less steam.
A new option is available for Pendle tUSDe users. PT-tUSDe (11.77% APY) can be used as collateral on @eulerfinance to borrow USDe. Pendle liquidity on Pendle is currently above $50M. // Loopers gotta loop_
– Terminal Finance (@Terminal_fi) October 3, 2025
Details are still the sort of thing you find in a whispering library: the announcement points to expansion, but the risk controls, collateral limits, and implementation specifics are still doing a very good impression of being on holiday. It’s the kind of news that makes you nod sagely and pretend you understood the footnotes.
How PT-tUSDe collateral works
PT-tUSDe is part of the Pendle Finance ecosystem, where tokens can be unfurled into two parts: Principal Tokens (PTs), which guarantee a fixed yield until maturity, and Yield Tokens (YTs), which flutter with variable returns. In this case, PT-tUSDe represents the principal portion of staked Ethena USDe deposits, and the process enables users to:
- Deposit their PT-tUSDe tokens into the Euler platform.
- Borrow USDe or other supported assets against that deposit, while still holding onto the underlying fixed yield from the PT.
- Leverage their position by using borrowed funds for additional strategies-yield farming, liquidity provision, or the noble art of not selling the original token.
In short, fixed-yield positions get to punch above their weight, turning passive returns into active liquidity with a flourish of financial cosplay. 🪙💹
What the community will watch for next
While the post confirms PT-tUSDe collateral is a go, the next installments-LTV ratios, liquidation thresholds, oracle feeds, and audit results-are still playing hide-and-seek. Those parameters determine how much you can borrow before the moat gets choked with lily pads and how well the dragons of valuation behave when maturity arrives.
Implications for DeFi users and protocols
The addition signals a broader trend in DeFi lending: assets with structured yields stepping out of the shadows and into collateral roles. For Euler, Pendle’s principal token could lure more seasoned users who enjoy wrangling APYs like a sorcerer wrangling a dragon-carefully, with a smile and a calculator. 🧙♂️
For borrowers, this means greater capital efficiency: you can unlock liquidity while still earning from your yield positions. Yet the introduction of derivative tokens brings new risks-valuation quirks at maturity and potential reliance on precise oracle pricing. How Euler tunes its risk parameters will largely decide whether the treasure is worth the traps. 🪄⚖️
In the grand tradition of well-timed scrolls, this development invites a bit of skepticism wrapped in curiosity, with a side order of amusement for anyone who enjoys watching markets juggle ideas like flaming torches. 🤹♀️
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2025-10-03 19:02