Aave PT looping effect pushes PT-reUSD price up, YT cheap

Pendle's trading desk noted that the Aave effect has begun: as PT looping goes live on Aave, buying pressure pushes PT prices up and implied APY down, while YT becomes cheap. The observation connects the launch of PT looping on Aave to a distinct market dynamic where loopers buying PTs compress yields and create relative value opportunities for yield-token buyers.

• PT price appreciation and YT cheapening are mechanical consequences of PT looping demand on Aave.
• The effect mirrors the earlier cycle seen when PT looping launched on other lending platforms.