# \[Gauntlet\] - PT-USD0++-27Nov2025 - Euler Yield Recommendations

**URL:** <https://forum.euler.finance/t/gauntlet-pt-usd0-27nov2025-euler-yield-recommendations/1484>\
**Category:** Euler DAO\
**Created:** [June 16, 2025, 9:34pm UTC](https://forum.euler.finance/t/gauntlet-pt-usd0-27nov2025-euler-yield-recommendations/1484 "2025-06-16T21:34:53Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\
**Post date:** [June 16, 2025, 9:34pm UTC](https://forum.euler.finance/t/gauntlet-pt-usd0-27nov2025-euler-yield-recommendations/1484/1 "2025-06-16T21:34:53Z")

</div>

## Summary

Should the community choose to onboard PT - USD0++ - 27Nov2025 to the Euler Yield markets, Gauntlet recommends the risk parameters below:

### Specifications

| Supply Cap | Borrow Cap |
| --- | --- |
| 500K | NA |

| Collateral | Debt | LLTV | Borrow LTV |
| --- | --- | --- | --- |
| PT - USD0++ - 27Nov2025 | USDtb | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | sDAI | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | wM | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDT | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | DAI | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USD0 | 0.84 | 0.82 |
| PT - USD0++ - 27Nov2025 | RLUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | rUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | PYUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDS | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDC | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDe | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | sUSDS | 0.82 | 0.8 |

## Rationale

### PT - USD0++ - 26JUN2025 Vault Statistics

- PT - USD0++ - 26JUN2025 vault has a supply cap of 6M with supply cap utilization being ~80%.
- Borrow demand against PT-USD0++ is primarily driven by blue-chip stablecoins with top suppliers using their positions to borrow assets like USDC and USDT. These positions typically maintain health factors just above 1, indicating high utilization and low buffer.  
 ![Screenshot 2025-06-16 at 1.03.42 PM](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/92b78bd98d0e698048b66f0c271d45cfa12027b9.png)

## PT - USD0++ - 27Nov2025 Pendle Pool

- Current liquidity is insufficient to support a 1M PT - USD0++ - 27Nov2025 to USD0++ swap, as even a 500K swap results in over 1.5% slippage, indicating significant depth limitations.  
 ![Screenshot 2025-06-16 at 1.08.58 PM](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/18886c218d243559b893e1418c8d741a77d37822.png)

### USD0++ DEX Pool Liquidity & Slippage

- As noted [earlier](https://forum.euler.finance/t/gauntlet-market-risk-parameter-recommendations-2025-04-30/1388), USD0++ relies on a relatively cumbersome atomic redemption process to convert back to USD0. The Floor Price mechanism allows users to redeem USD0++ for USD0 at a discount prior to maturity. This floor is set manually (e.g., 0.87 USD0 per USD0++).

| pool\_name | pool\_type | pool\_url | pool\_tvl\_usd | volume\_24h\_usd |
| --- | --- | --- | --- | --- |
| USD0++ / USD0 | curve | [Link](https://www.geckoterminal.com/eth/pools/0x1d08e7adc263cfc70b1babe6dc5bb339c16eec52) | $67.90M | $5.45M |
| USD0++ / USDT 0.3% | uniswap\_v3 | [Link](https://www.geckoterminal.com/eth/pools/0x00cc0523b7a2b97f1d52bea1b7a0c50027e0a706) | $897.21K | $28.05K |
| USD0++ / USDT 0.15% | uniswap-v4-ethereum | [Link](https://www.geckoterminal.com/eth/pools/0xf7823899db25b4576112703529d5b6d4b94943b5ca1c08d48116813e820de49c) | $104.25K | $9.89K |

- The USD0++ ~ USD0 Curve pool is currently the primary source of DEX liquidity. The number of holders in this pool has declined from approximately 6.5K six months ago to around 4K today. **With over 60% of the pool size held by Euler vaults, signaling a potential concentration risk.  
  ![Screenshot 2025-06-16 at 1.23.36 PM](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/0bfbc999586a8e3d8b9e6b80620bdd72db5f9fde.png)**
- PT-USD0++ Euler vaults use Pyth oracles for USD0++/USD market rate pricing and swapping 6M USD0++ now incurs 6-10% slippage, depending on day and time, suggesting liquidity has declined since [April](https://forum.euler.finance/t/april-2025-non-critical-parameter-updates-by-risk-stewards/1364/12), when a similar trade saw ~5% slippage. We also noticed that slippage can reach as high as 15%.  
 ![Screenshot 2025-06-16 at 4.09.42 PM](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/6ddb4a8334a3383084ce4f69526f7c7f088e737a.jpeg)

## Caps Recommendations

We recommend a supply cap of 500K considering PT-USD0+±26JUN2025 ~ USD0++ slippage limitations.

| Supply Cap | Borrow Cap |
| --- | --- |
| 500K | 0 (borrowing disabled) |

## LLTV Recommendations

We recommend lowering the LLTV from 84 % to 82 % for PT - USD0++ - 27Nov2025 due to the outlined slippage concerns and concentration risks.

| Collateral | Debt | vault\_lltv | vault\_borrow\_ltv |
| --- | --- | --- | --- |
| PT - USD0++ - 26JUN2025 | USDtb | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | sDAI | 0.84 | 0.82 |
| PT- USD0++ - 26JUN2025 | wM | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | USDT | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | DAI | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | USD0 | 0.9 | 0.84 |
| PT - USD0++ - 26JUN2025 | RLUSD | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | rUSD | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | PYUSD | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | USDS | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | USDC | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | USDe | 0.84 | 0.82 |
| PT - USD0++ - 26JUN2025 | sUSDS | 0.84 | 0.82 |

Considering the current liquidity and concentration risk, we recommend reducing LLTV by 2% for PT - USD0++ - 27Nov2025 against other stablecoins.

In addition, we recommend an LLTV of 84% and a borrow LTV of 82% for the PT - USD0++ - 27Nov2025 USD0 pair.

| Collateral | Debt | LLTV | Borrow LTV |
| --- | --- | --- | --- |
| PT - USD0++ - 27Nov2025 | USDtb | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | sDAI | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | wM | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDT | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | DAI | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USD0 | 0.84 | 0.82 |
| PT - USD0++ - 27Nov2025 | RLUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | rUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | PYUSD | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDS | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDC | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | USDe | 0.82 | 0.8 |
| PT - USD0++ - 27Nov2025 | sUSDS | 0.82 | 0.8 |

## Next Steps

- We welcome community feedback.
- We will revisit LLTV settings for Usual.
- We continue to monitor liquidity for PT - USD0++ - 27Nov2025.

---

<div class="post-metadata">

**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\
**Post date:** [June 30, 2025, 8:30am UTC](https://forum.euler.finance/t/gauntlet-pt-usd0-27nov2025-euler-yield-recommendations/1484/2 "2025-06-30T08:30:31Z")

</div>

# Objective Labs: Recommendations for PT-USD0++-27Nov2025 on Euler Yield

## Summary

Objective Labs has reviewed Gauntlet’s recommendations for PT-USD0++-27Nov2025. Based on historical volatility risk, present liquidity risk, and the inability to compete with Usual’s superior PT market on Euler, we do not recommend onboarding PT-USD0++-27Nov2025 on Euler Yield at this time.

## Volatility Risk

USD0++ is fundamentally different from all other stablecoins in Euler Yield: it is priced as a discounted bond with a floating peg. USD0++ on decentralized exchanges has historically been volatile, less able to benefit from highly concentrated liquidity due to its inherent properties.

 ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/45f95ef2e57d85909eb8a1945871299d3f6e4373.png)

## Liquidity Risk

Existing DEX liquidity of USD0++ to USDC allows for swaps up to $6M to be executed with \<1% slippage with a steep increase beyond that.

### USD0++ / USDC Depth

| Size | Slippage |
| --- | --- |
| 6M | 1% |
| 8M | 5% |
| 10M | 25% |

 ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/5edf8e86d230c2afa9d987bfabd5deee35717927.png)

### PT-USD0++-27Nov2025 / USD0++ Depth

Liquidity in the Pendle market has improved since Gauntlet’s review, serving a $700k swap with \<1% slippage and a $4M swap with 5% slippage.

| Size | Slippage |
| --- | --- |
| $0.7M | 1% |
| $1.6M | 2% |
| $4M | 5% |

## Competitive Risk

Usual is a major user of Euler with the Usual Stability Loan (USL) market nearing $700M in deposiuts and the [recently launched](https://app.euler.finance/positions/0xcC45184138c6De9AA4e15d6F83fC737a363Bd739/0x77633305032b6bDf3eBdB373b3bADcCb2786ce2f?network=ethereum) PT-USD0++/USD0 market nearing looking to capture PT demand.

We believe Usual’s market is better placed to absorb user demand through fixed borrow rates and protocol-directed liquidity. Therefore we assess that the opportunity to capture borrow demand from Usual’s PTs in Euler Yield is too little to offset the risks added to the marke.t

 ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/fee3b8f36530570310f0527accb5b63dda7ec6e2.png)