Aave DAO's Hot Vote: Pendle's Principal Tokens Set to Shake Up V3 Core Market!

Revolutionary Proposal Hits Snapshot: Will PTs Transform Aave?

Hold onto your hats, crypto fans! Aave DAO members are buzzing with excitement over a sizzling proposal to inject Pendle's Principal Tokens into the heart of its V3 Core market. Dropped like a bombshell on the web3 voting platform Snapshot on April 7, this proposal is not just a suggestion—it's a game-changer!

Pendle (PENDL), the trailblazing decentralized finance protocol, is all about splitting yield-bearing tokens into two thrilling parts: the Principal Tokens (PTs) and Yield Tokens (YTs). PTs are like the cool, calm, collected cousins of fixed-income instruments, holding the original value of the token and redeemable at full value when they mature. Meanwhile, YTs are the wild ones, giving holders a ticket to the future yield rollercoaster of the underlying asset.

The proposal isn't messing around—it's starting with a bang by listing one PT test token. No immediate onboarding, but the plan is to gauge user demand and nail the technical integration. To keep things safe, they're kicking off with PT tokens tied to assets already strutting their stuff on Aave (AAVE), like sUSDe. Smart move, right?

As Pendle's total value locked skyrockets past $3 billion, the hunger for tokenized yield trading is real. And guess what? The demand for using PTs as collateral is soaring right alongside Pendle's growth. If Aave lets users borrow against PTs, it could ride this wave to new heights, opening up fresh strategies for yield traders and potentially unlocking billions in new loan volume. Talk about a power move!

Aave's not just winging it—they're bringing out the big guns with a proprietary pricing technique called the "linearly increasing lower bound" model to handle the unique vibe of PTs. After the integration gets the green light, Aave's risk service providers will set the risk parameters. Sure, the test PT token won't be onboarded right away, but this proposal is laying the groundwork for a future where PT tokens could be the life of the party.

The Snapshot vote kicked off on April 7 and will wrap up on April 11. And get this—100% of the 6,500 DAO members who've voted so far are all in, giving the proposal a resounding yes!

According to the latest from DeFiLlama, Aave's V3 platform is still a heavyweight in DeFi, flexing over $16.2 billion in total value locked and $9.9 billion in outstanding loans. And April's already seen $1.3 billion in inflows, blowing past March's $984 million. The future's looking bright, and Aave's ready to ride the wave with Pendle's Principal Tokens!