# How to Loop PT-sYUSD on TermMax

**Published by:** [Aegis.im](https://paragraph.com/@aegis-im-2/)
**Published on:** 2025-11-13
**URL:** https://paragraph.com/@aegis-im-2/how-to-loop-pt-syusd-on-termmax

## Content

This guide explains how users can loop PT-sYUSD on TermMax to amplify fixed yield until December 18. It covers every required step, explains why this strategy is attractive in current market conditions and the associated risks.What are Pendle PTsPendle splits yield-bearing assets into two components:PT (principal token)YT (yield token)PT represents the principal value that is redeemed at maturity. When users buy PT at a discount and hold until maturity, they lock in a fixed yield. This creates predictable return that does not depend on variable interest rates or market volatility. PT-sYUSD gives users exposure to sYUSD’s underlying yield, but in a fixed format with a defined maturity date. Users who prefer stable, consistent returns often choose PTs over variable-rate lending or farming. Learn more by checking out the Pendle docs.What is TermMaxTermMax is a fixed-rate lending protocol where users borrow assets at a predictable, pre-agreed rate. Instead of variable borrow APY that can spike when utilization increases, TermMax lets users lock in a fixed borrow rate for the entire term. In this strategy, users:Supply PT-sYUSD as collateralBorrow USDC at a fixed rateSwap it back into YUSD and repeat the loopThe system revolves around fixed yield on both sides. PT-sYUSD earns fixed returns until maturity, while the USDC borrow rate is also fixed until maturity. This removes the risk of borrow spikes making the position unprofitable.Step by Step Guide1. Go to the Aegis buy page and swap USDC or USDT for YUSD2. Go to the Earn tab and stake YUSD for sYUSD(Unstaking has a 7-day cooldown)3. Go to the Pendle PT-sYUSD market and swap your sYUSD for PT-sYUSD(Dec 18)4. Go to the TermMax market, deposit PT-sYUSD as collateral, and borrow USDC5. Swap the borrowed USDC back into YUSD on the Aegis app and repeat the process.Understanding the StrategyPT-sYUSD allows users to earn fixed APYUSDC borrow rates are fixed on TermMaxA 90% LTV means the user can borrow $0.9 in USDC for every $1 of PT-sYUSD collateral. When looped, the collateral’s yield is amplified. PT-sYUSD earns a fixed return until December 18. Borrowing against PT on TermMax lets users buy more PT-sYUSD, which earns a fixed yield, depending on the trading activity in the pool. Each loop adds more PT working for you, while the borrow rate stays fixed for the entire term. Instead of earning fixed yield on their principal, users can earn it on a larger PT notional balance thanks to leverage. This multiplies the effective return while keeping the borrow rate predictable. Please note: You must repay your TermMax debt before the market’s maturity on December 25, 2025. When PT-sYUSD matures on December 18, redeem it for sYUSD, convert the sYUSD back to YUSD on Aegis, and use it to repay the USDC loan on TermMax.Importance of Fixed Borrow RatesBoth sides of the trade are fixed until maturity, which means:No exposure to borrow rate spikesNo auto-liquidations due to variable interest ratesPredictable returns until December 18 maturityMany looping strategies fail when variable borrow rates jump higher than the yield being earned. Fixed rates remove this risk. The user does not need to exit early or suffer slippage to unwind during volatile market conditions. As long as collateral value remains stable relative to debt, the strategy remains functional.RisksAlthough this strategy is more predictable than variable-rate looping, it still carries risk:Underlying collateral risk: PT-sYUSD value depends on YUSD being overcollateralized. If the value of YUSD drops due to market stress, collateral value decreases. This can increase liquidation risk.PT price sensitivity: PT prices fall when the implied yield rises. If PT-sYUSD price declines, collateral value decreases. This can push a position closer to liquidation.Smart contract risk: Aegis, Pendle and TermMax are all deployed through onchain smart contracts. Users rely on the security of these contracts, audits, and operational safeguards. Exploits, oracle failures, or contract bugs can lead to loss of funds.Liquidity risk: If users need to unwind early, the PT-sYUSD price on the Pendle market may suffer due to slippage. There is no guarantee of deep liquidity at all times, especially during market stress.Disclaimer This guide is for educational and informational purposes only. It should not be interpreted as investment advice, trading advice, financial advice, or a recommendation of any specific product or strategy. Digital assets involve risk, including the potential loss of principal. Users are responsible for conducting their own research, evaluating their personal risk tolerance, and consulting a qualified financial professional if needed. Aegis, Pendle, and TermMax do not guarantee the performance or future value of any asset or return. Onchain strategies can be complex and should only be used by individuals who fully understand the risks involved.

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