Agree, loop on @aave. And if you use certain assets like PT-srUSDe, this entire class of problem disappears. What happened this morning on morpho: > 19 loopers liquidated. > not because reUSD broke, it never moved. So, @pendle_fi documents two ways to price a PT. > A linear discount curve, which its docs mark recommended for money markets and collateral pricing. > Or a TWAP on the PT's own market price, listed for integrations that need a live market read. This market used the second, on a pool thin enough to push. Result? > $320k of YT buys over nine minutes moved the mark ~2.8%. > $37m of collateral seized, $946k paid in liquidation bonuses. > The price was most of the way back within the hour. > The loops were already gone. Aave takes the first path, and doesn't read the PT's own market price. > It prices the PT as a zero coupon bond: a linear discount decaying to par at maturity, on top of the underlying feed, with a ceiling fixed in the contract at deployment. > No trade, at any size, touches your mark. Take PT-srUSDe-22oct2026 as the case study. > Discount rate 3.77%, ceiling 10.22%. > With 57 days left, the deepest the oracle can mark you down is ~1%. > Buffer at max borrow: 2.14%. $250m of USDe sits borrowable behind it, 9.9x max leverage, 37.72% max looping APY today. Why PT-srUSDe you ask anon? > @ethena runs the one of the most diversified yield engine onchain: basis trade, institutional lending, defi lending, rwa. > srUSDe is the senior claim, junior capital takes first loss. > Currently there's about $7.5M in junior sitting below senior > That seniority is priced: 10.22% ceiling against 12.27% on PT-sUSDe, 93.36% threshold against 92.65%, same maturity. > Fixed rate on top. First-loss capital underneath. @LidoFinance's EarnUSD already runs this loop, extended through @twynexyz's delegated credit.