Summary
This proposal seeks approval to integrate PT-USDS-14AUG2025 as collateral on the Euler Yield market. We believe this will allow Euler DAO to strategically expand its competitive stablecoin yield offering with little added total risk to the market.
Risk
USDS is a blue chip stablecoin with an onchain PSM for instant liquidity to USDC. It is already accepted as valid collateral and debt in Euler Yield, as well as the more conservative Euler Prime. Euler Yield hosts only USD-derivative assets, so we do not expect market-driven liquidations to happen downstream of this integration.
Caps
| Supply Cap | Borrow Cap |
|---|---|
| 20M (~$20M at expiry) | 0 (borrowing disabled) |
Objective Labs recommends that PT-USDS be non-borrowable in line with Euler Yield’s strategy for PTs.
Liquidation LTVs
| Debt | LLTV |
|---|---|
| USDC, USDT, PYUSD, RLUSD, wM, USD0, USDe, USDtb, rUSD | 92% |
| USDS, sUSDS, DAI, sDAI | 94% |
In line with the rest of the market, Objective Labs recommends that the BLTV be set to two percentage points lower than LLTV.
Interest Rate Model
The IRM can remain unset since PT-USDS will be non-borrowable.
Oracle
We propose that a Pendle PT market oracle be used, crossed by Pyth’s USDS/USD market feed. The latter part of the same oracle configuration matches the one used for USDS.
