Aave’s USDG rollover plan has a yield below most quoted borrowing rates

- Aave’s USDG rollover is a masterclass in negative carry. The new Feb 2027 Pendle PT yields ~2.98%, while borrowing USDT0, USDC, and USDG on Aave costs 3.75% to 5.87%. Unless you’re leveraging GHO at sub-1% rates or banking on OKX’s fleeting exchange bonuses, this trade is mathematically suicide. Leverage amplifies the bleed; five times exposure turns that tiny discount into a guaranteed loss. It’s not yield farming, it’s paying rent for the privilege of being underwater. Stop treating discounted claims like free money. If your strategy relies on external subsidies rather than organic spread, you aren’t an investor—you’re just a meat wallet holding the bag until the incentives dry up. Do the math before you blow up your account.