# Aave's proposed USDG rollover yields less than most borrowing rates, and some yield-collateral loans sit near liquidation

CryptoSlate's snapshots show a February principal-token yield below three quoted funding rates, plus collateral that can take hours to turn into the stablecoins needed to repay loans.

- Published: 2026-10-12T05:41:53.098Z
- Canonical: https://polylog.news/crypto/2026-10-12/aave-s-proposed-usdg-rollover-yields-less-than-most-borrowin
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/aaves-proposed-usdg-rollover-faces-higher-borrowing-costs-and-uncertain-rewards/), [CryptoSlate](https://cryptoslate.com/aaves-yield-collateral-markets-reveal-a-thin-cushion-before-liquidation/), [Aave Governance](https://governance.aave.com/t/direct-to-aip-onboard-pt-usdg-24sep2026-to-aave-v4-on-ethereum/24942)

Aave, the largest decentralized lending protocol, lets users post Pendle principal tokens (PTs) as collateral. A PT pays a fixed yield at a set maturity. Users commonly deposit PTs backed by Global Dollar (USDG), borrow stablecoins against…

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