Rolling over to the new Pendle PT-LBTC pool (25 September 2025 expiry)
Summary
This proposal seeks to introduce new Pendle LBTC pool on Base to the borrowers utilizing PT-LBTC tokens as collateral on Morpho, due to the previous pool meeting its expiry date (29May2025).
The new Morpho PT-LBTC25Sep2025 / cbBTC market will be deployed soon, with the parameters being proposed below.
Note: Please find the full Pendle protocol, PT tokens, and the linear discount oracle risk assessment by BA Labs here.
Liquidity Assessment (LLTVs and Supply Caps)
Considering the rollout to the pool with the new expiry date, we’re proposing listing the new Morpho PT-LBTC/cbBTC market with the same parameters as the previous pool based on the risk assessment linked above.
Based on historical PT yield data for LBTC, we find the implied yield of PTs has decreased significantly since the last maturity, being around 1% since the pool deployment.
It’s also worth noting that this implied yield is completely supported by Babylon and Lombard points farming, i.e. currently LBTC is not generating any underlying yield (this may change in the future, of course).
Based on the LLTVs assessment, although the 94.5% LLTV is regarded as safe, we recommend focusing on the 91.5% LLTV pool (~12x maximum leverage) as a more balanced option for managing the risk/return ratio in the upcoming PT-LBTC-25Sep2025/cbBTC market, considering the recent deployment of the Pendle and Lombard protocols on the Base network.
In the effort of gradual rollout, we propose the supply cap for the PT-LBTC-25Sep2025/cbBTC market of 10 cbBTC (~$1M at current prices).
Parameter Summary
We recommend to onboard the PT-LBTC-25Sep2025 to the Moonwell Frontier cbBTC vault with the configurations listed below:
- Address: TBD
- Pool LLTV: 91.5%
- Supply cap: 10 cbBTC
- Price oracle yield to maturity: 15%
- Price oracle PT redemption value: 1 BTC