🧭 Yield Hunter Series: Pendle’s sUSDAI LP — Where Yield Meets Points Farming

By Kevin - Dads Defi Space

Welcome back to Yield Hunter, where we scour the DeFi landscape for strategies that deliver maximum yield with intelligent risk — and, when possible, layer in lucrative points farming. This week’s hunt brought us to Pendle, where the stablecoin market is heating up, and a new LP opportunity is flashing green: sUSDAI.

This isn’t just about 30%+ APY — it’s about yield, points, and optionality all in one play.

Here’s the full breakdown.

🔎 What is sUSDAI?

sUSDAI is a yield-bearing stablecoin on Arbitrium developed by USD.AI, a protocol that sources on-chain yield through algorithmic strategies and risk-managed portfolios. Think of it as a DeFi-native yield aggregator wrapped in a stablecoin — similar in spirit to stETH or sDAI, but focused on maximizing stablecoin returns.

On Pendle, sUSDAI has been tokenized into:

• PT (Principal Token)

• YT (Yield Token)

• LP Token — a combo of both for liquidity providers.

Let’s break down the strategy options.

🧱 The 3 Strategies

🟩 1. LP sUSDAI

• 🔁 Current APY: ~31%

• 🧩 Earns: sUSDAI yield, Pendle emissions, swap fees

• 🎯 Points: Retains majority of points

• 🔓 Access: No lockup; exit anytime

• ⚖️ Risk: Minor exposure to volatility; stablecoin-only IL risk is minimal

🟨 2. YT sUSDAI (Yield Token)

• 🎢 Leverage: Up to 46x on yield + points

• 🧨 Risk: Value decays to zero at maturity

• 💎 Why Use It: Maximum speculative exposure to points farming, e.g., Pendle, USD.AI, possible retroactive rewards

• 🧠 Degen-Only Zone

🟦 3. PT sUSDAI (Principal Token)

• 💵 Fixed APY: 30.02% (at maturity)

• ✂️ No Points: You opt out of all point accrual

• 🧘‍♂️ Use Case: Fixed-income lovers who don’t want exposure to floating yields or farming meta

🧠 Why LP sUSDAI is the Yield Hunter Play

Among the three options, the LP token is the sweet spot for strategic liquidity providers who want both strong, passive income and exposure to point-driven upside.

Let’s dig into the metrics that matter:

📊 Metrics Review: LP sUSDAI

🎯 How to Maximize This Play

Here’s a mini-strategy stack to level up your returns:

1. LP the sUSDAI Pool

• Use Pendle’s UI or protocols like Penpie / Equilibria for boosted gauges.

• Deposit both PT and YT to form LP.

2. Lock vePENDLE or Use Yield Aggregators

• Boost rewards via vePENDLE votes, or let Penpie auto-boost for you.

3. Track Points Accrual

• Monitor Pendle points (likely to convert to token incentives)

• Monitor USD.AI points — may become eligible for retroactive airdrops or boosts

• Stay alert for EigenLayer restaking integrations if sUSDAI joins their ecosystem

🧨 Why Not YT?

The 46x leverage on YT sUSDAI is tantalizing — but extremely high-risk.

• ✅ Great for whales chasing points or speculative airdrops

• ❌ No guaranteed return

• ❌ Value decays to zero at maturity

• ❌ Highly sensitive to underlying APY volatility

YT is strictly for seasoned degen farmers who can manage liquidity and are betting heavily on points-to-token conversion rates.

🧘 Why Not PT?

The 30.02% fixed APY is attractive if you want certainty and are unconcerned about points.

But in a yield-maximized meta — where points farming may surpass even token emissions in value — passing on Pendle/USD.AI points could leave a lot on the table.

This option is ideal for institutional capital or risk-averse LPs looking for guaranteed returns from USD.AI’s strategy.

🔚 Yield Hunter Verdict

🧠 Pro Tip: Want to go deeper? Stake your LP tokens on Penpie or Equilibria to auto-boost rewards via vePENDLE strategies, or lock your own PENDLE to capture more emissions and voting power.

📆 Next Week on Yield Hunter: ??? You will have to join Dads DeFi Space to find out.