Pendle LPs are now supported as collateral on @MorphoLabs With this, we’ll be unlocking liquidity for $1.36B of LP money, giving users powerful new ways to loop and stack yield, along with points!

To start, 3 markets will be made available, with more integrations on the way soon: 🔹LP-sUSDe (25 Sep 2025) / USDT 🔹LP-sUSDe (31 Jul 2025) / USDT 🔹LP-eUSDe (14 Aug 2025) / USDT

Using your LP as collateral is as easy as 1-2-3: 1️⃣Wrap your LP, which can be accessed via Tools > LP Wrapper in the respective pool page 2️⃣Supply your Wrapped LP as collateral 3️⃣Borrow USDT

A few quirks to note for Wrapped LP: 🔹They are not trackable on the Pendle dashboard 🔹They do not receive boost from your vePENDLE, so only the base APY applies (Exclusive Pendle multipliers for points however still apply) 🔹Rewards are claimable on dashboard in Merkle Rewards Tab every few weeks

For those looking to service and profit from this incoming borrow demand, you can easily do so with @k3_capital USDT vault on Morpho:

Thanks to Morpho, the Pencosystem welcomes a new yield-power tool for DeFi. While PTs remain a go-to for wealth preservation, LP collateral unlocks a more dynamic strategy for users seeking higher upside through leverage and composability.