Pendle Finance has expanded its PT Looping feature to include two new markets on Morpho: PT-USDai and PT-sUSDD. The addition, announced on August 4, 2026, gives users a one-click path to leveraged yield on stablecoin-backed principal tokens, with the top offering clocking in at an estimated maximum APY of 27.13%.
For context on what that number means in practice: PT Looping automates 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 one-click version handles the whole loop in a single operation.
The two new markets, explained
PT-USDai carries the headline figure: an estimated maximum looping APY of 27.13%, with a maturity date of October 14, 2026. PT-sUSDD comes in at an estimated maximum looping APY of 15.96%, maturing slightly earlier on August 26, 2026.
Because PT tokens have a predictable redemption value at maturity, lenders on Morpho can price the collateral risk with more confidence than they could with a volatile token whose floor is essentially unknown. Borrow against something you know will be worth a specific amount on a specific date, and the liquidation calculus becomes considerably less nerve-wracking.
