GAIB integrates PT-AIDaUSDT as a collateral asset in Morpho
A new earning opportunity arises for the GAIB ecosystem!
From today, GAIB depositors holders of PT-AIDaUSDT on Ethereum are able to use their AID Alpha tokens as collateral to borrow USDC. GAIB is working with the digital asset manager Hyperithm to set up this Morpho market for the AID Alpha token.
This integration is another step forward into the growth of the AID token in the DeFi ecosystem, expanding its utility and market penetration, and proving the ecosystem’s trust in its development.
Read on for more details.
What is happening
Morpho, the second largest lending and borrowing protocol in the blockchain space with $6.5b in deposits, has integrated GAIB’s PT-AIDaUST Alpha token as a collateral asset to borrow capital in its Ethereum lending market.
This enables GAIB depositors who have activated Pendle’s PT-YT yield mechanism to their AIDaUSDT receipt tokens (from their Spice Harvest campaign deposits) to borrow USDC against them.
This is an opportunity to make their deposits liquid to be used in the rest of the DeFi ecosystem and, if they see fit, obtain an extra layer of yield by engaging in looping mechanisms.
How can you take advantage
Users can simply use their PT-AIDaUSDT tokens as collateral on Morpho and get USDC according to the LTV, APR and other terms available.
Yet, for those who wish to boost their APYs by taking some extra risk, this opportunity might be appealing:
- Purchase PT-AIDaUSDT from Pendle (link to market here)
2. Go to Morpho and supply PT assets as collateral in the PT-AIDaUSDT/USDC market (link to market here)
3. Borrow USDC
4. Swap USDC for more PT-AIDaUSDT
5. Repeat step 1–4
Users shall bear in mind that this looping mechanism carries extra risk as there’s:
- Liquidation Risk: Higher leverage carries a higher risk of liquidation. The Morpho PT-AIDa markets curated by Hyperithm utilizes a dynamic pricing (TWAP) oracle, which takes the 60 minutes TWAP pricing of the PT asset on Pendle. If the Implied Yield (IY) increases substantially, the price of PT-AIDa causes the Loan-to-Value (LTV) ratio to possibly exceed the liquidation threshold of 91.5% LTV.
- Underlying token/Depeg risk: In the event of a price depeg in the underlying token, the price of PT-AIDa will decrease and this may cause the LTV ratio to exceed the maximum liquidation threshold, resulting in the liquidation of the collateral position.
- Rate Volatility: PT-AIDa is a fixed rate asset but borrow rates for USDC may spike on Morpho depending on the pool utilisation. As more users borrow against their PT-AIDa collateral on Morpho, borrow rates will increase and there is also a possibility that borrow rates exceed the yield of PT-AIDa resulting in negative yields for the user.
Users shall measure their risk and engage in this mechanism accordingly.
Conclusion
We’re excited to keep growing AID in the DeFi ecosystem and bringing opportunities to our community.
GAIB brings real world yields from AI infrastructure financing deals onchain while it integrates AID in the core decentralized finance protocols so we enable holders to maximize returns on their participation in the GAIB ecosystem.
For regular updates and more opportunities, follow us on X or join our Discord or Telegram.
About Hyperithm
Founded in 2018, Hyperithm is a crypto hedge fund manager headquartered in Tokyo and Seoul, backed by world-renowned investors including Coinbase, Samsung, Kakao, and Hashed.
Their asset management arm specializes in algorithm-based, market-neutral strategies as well as on-chain risk analysis and curation.
Beyond asset management, Hyperithm actively supports the crypto ecosystem as a dedicated evangelist through venture investment.
About GAIB
GAIB is the first economic layer for AI and compute, transforming GPU-backed assets into yield-generating opportunities. Through AID, GAIB’s AI synthetic dollar, investors can seamlessly access the AI economy while earning real yield from AI-powered compute. Staking AID (sAID) allows token holders to earn rewards while maintaining liquidity, offering access to AI-driven financial markets.
GAIB also powers AI infrastructure by providing capital solutions for cloud providers and data centers, optimizing their access to compute resources. With integrations across DeFi protocols, including lending, borrowing, and structured products, GAIB bridges AI and blockchain finance, unlocking new opportunities at the intersection of technology and investment.