Aave Turns On Automated Risk Agents for Pendle Token on Plasma
Aave activated automated risk agents for a Pendle token on Plasma
Aave has switched on automated risk agents from LlamaRisk for the token PT-sUSDe-22OCT2026 on its V3 Plasma market. The agents, known as LlamaGuard, can adjust how the token is valued as collateral and how much can be borrowed against it.
LlamaRisk said on October 5 that its LlamaGuard PT Risk Oracle is "now live" after Aave DAO members approved it. The Aave proposal that authorised the setup, Proposal 524, is listed as executed. About 371,000 AAVE in voting power was cast in favour, with none opposed.
The change affects lenders and borrowers who use Aave, a decentralised lending platform where people deposit crypto to earn interest and borrow against their deposits.
What the vote approved
- Aave's reserve page showed $36.72 million of PT-sUSDe-22OCT2026 supplied on October 5.
- The token can only be used as collateral in E-Mode, Aave's higher-borrowing-power categories for related assets.
- Two predeployed agent contracts were authorised to apply updates calculated from Pendle market data through Chainlink's Runtime Environment, a system that runs blockchain software.
- The proposal did not change the linear discount-pricing model, and the activation payload did not reset reserve parameters.
What the agents are allowed to change
The discount-rate agent can move the annual rate used to value the token by up to 100 basis points, which is one percentage point, each time it updates. It must wait at least two days between updates.
The E-Mode agent can adjust loan-to-value ratios, liquidation thresholds and liquidation bonuses in categories 25 and 26, labelled "PT-sUSDe Stablecoins" and "PT-sUSDe USDe". Each of those settings can move by up to 50 basis points per update, with at least three days between updates for each category.
What it means for borrowers
A higher discount rate lowers how much the token is worth as collateral. A lower valuation or liquidation threshold reduces the borrower's health factor, which is the measure Aave uses to decide whether an account can be liquidated. A lower health factor means more collateral is needed for the same loan.
The liquidation bonus sets the extra collateral a liquidator receives when repaying a debt.
Aave governance keeps the final say
Aave governance still controls agent registration and administrator changes, according to LlamaRisk's deployment documentation. The Protocol Guardian, a role created to protect the protocol in emergencies, can switch off either agent without waiting for another vote. Turning an agent back on would require a vote.
Why the change was made
LlamaRisk said in its governance rationale that it had been maintaining the parameters for this Pendle token by hand through Aave's Risk Stewards. The automated agents are meant to replace that manual process.
A short timeline for this token
PT-sUSDe-22OCT2026 redeems for an amount of sUSDe worth one USDe when it matures. The pricing model already reduces the token's discount as the maturity date gets closer. LlamaRisk's monitoring dashboard says the oracle retires at the token's October 22 maturity.
Sources
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