# Integrate PT-eUSDe on Euler Yield Market

**URL:** <https://forum.euler.finance/t/integrate-pt-eusde-on-euler-yield-market/1329>\
**Category:** Markets\
**Created:** [March 24, 2025, 7:09am UTC](https://forum.euler.finance/t/integrate-pt-eusde-on-euler-yield-market/1329 "2025-03-24T07:09:28Z")\
**Posts on this page:** 1\
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**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:** [March 28, 2025, 3:31pm UTC](https://forum.euler.finance/t/integrate-pt-eusde-on-euler-yield-market/1329/3 "2025-03-28T15:31:19Z")

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# [Gauntlet] Parameter Recommendations for PT-eUSDe-29MAY2025 on Euler Yield (2025-03-28)

In light of the proposal by Objective Labs, Gauntlet recommends the following risk parameters to the protocol:

## Cap Recommendations

Gauntlet will recommend this asset is not initially borrowable given its limited such utility as a maturing PT.

- Set supply cap to 40,000,000
- Set borrow cap to 0

Presently PT-eUSDe can withstand over 50M swap to SY-eUSDe in Pendle AMM with less than 1.5% price impact. Subsequent rationale follows that in our 03/27 [proposal](https://forum.euler.finance/t/gauntlet-supply-cap-recommendation-for-eusde-on-euler-yield-2025-03-27/1340) for updating the eUSDe supply cap.

We are aligned with the risk profile of the oracle recommended by Objective Labs. Using a Pendle PT oracle would continually allow the PT-eUSDe / eUSDe price to converge to market price based on implied APY and tenor within reasonable time.

## Interest Rate Curve Recommendations

This asset is recommended to not be borrowable initially, so no IR curve need be set.

## LLTV Recommendations

Here we aim to maximize risk-adjusted capital efficiency for users. We anticipate usage of markets for looping PT-eUSDe / stablecoins, PT-eUSDe / eUSDe, and PT-eUSDe / USDe.

This table assumes PT-eUSDe as the collateral asset.

Borrow LTVs are recommended as _four_ percentage points less than the recommended LLTVs per collateral/debt pair.

| Debt | LLTV |
| --- | --- |
| wM | 86% |
| USDT | 86% |
| USDS | 86% |
| eUSDe\* | 92% |
| USDe | 90% |
| USDC | 86% |
| USD0 | 86% |
| RLUSD | 86% |
| PYUSD | 86% |
| FDUSD | 86% |
| DAI | 86% |

## eUSDe Borrow Recommendations\*

As pointed out by @daffy, borrowing is not currently enabled for eUSDe. As part of the recommendations for this asset, we also recommend enabling eUSDe borrows.

### Cap Recommendations

We recommend setting the borrow cap to 50% of the supply cap (which our [current proposal](https://forum.euler.finance/t/gauntlet-supply-cap-recommendation-for-eusde-on-euler-yield-2025-03-27/1340) recommends at 40M). Borrowing demand will be expected for PT-eUSDe / eUSDe looping. We would like to support capital efficiency while noting heavy usage of eUSDe as collateral for looping eUSDe / stablecoin positions. Therefore borrowing should be limited to the extent that sufficient redemption capacity will exist for liquidators during long tail events.

### Interest Rate Curve Recommendations

Since mid-February, Pendle implied APY for eUSDe has decreased from 17.9% to 11.3%. Noting this trend, we recommend the following IRM:

- kink utilization of 50%
- kink borrow APY of 10%
- max borrow APY of 100%

## Next Steps

- We welcome community feedback

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_[View the full topic](https://forum.euler.finance/t/integrate-pt-eusde-on-euler-yield-market/1329)._