Pendle expands one-click looping to tokenized stocks on Base

PendleLoop now lets eligible users take leveraged long positions on seven Coinbase-issued stock tokens by borrowing USDC on Aave V4

Pendle Finance has extended its one-click looping feature beyond crypto-native yield assets. On October 22, 2026, the protocol launched PendleLoop, a tool that lets users open leveraged long positions on tokenized US stocks on the Base network.

PendleLoop relies on Aave V4 for the borrowing side of the trade. Users deposit a stock token as collateral, borrow USDC against it, and the tool routes that USDC back into more of the same stock token.

Leverage ranges from 2.6x to 4.2x, depending on which stock token a user picks. Different assets carry different leverage ceilings, so a looped position on one name will not necessarily look like a looped position on another.

On Aave, these stock tokens function as collateral-only assets. You can post them to borrow against, but you cannot borrow them.

To encourage adoption, Pendle is waiving fees on non-PT loops until December 31, 2026. The stock token loops fall into that category, so early users get the leverage without the protocol taking its usual cut.

PendleLoop did not start with stocks. Pendle previously ran a beta version of the looping tool built around principal tokens, or PTs. Pendle is best known for splitting yield-bearing assets into two pieces: the principal token represents the underlying asset, and a separate yield token represents the income it generates.

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The launch builds on infrastructure Coinbase put in place earlier this year. Coinbase Tokenized Stocks went live on Base in August 2026, bringing equity-backed tokens to the network and enabling continuous trading in a DeFi setting.

Pendle had already been warming up to these assets before PendleLoop arrived. In mid-October 2026, the protocol added GOOGLc and NVDAc as yield markets on Base, backing each pool with $20K USDC in liquidity provider incentives.

So the sequence runs like this: Coinbase issues the tokens in August, Pendle lists a couple as yield markets in mid-October, and roughly a week later it rolls out leveraged looping across seven names.

Leverage cuts both ways: at 4.2x, a modest decline in the underlying stock translates into a much larger hit to the position, and looped positions can face liquidation if collateral values fall far enough.

If tokens trade continuously while their underlying markets do not, prices can move sharply when traditional exchanges reopen, and leveraged holders tend to feel those gaps first.

Once Pendle’s waiver ends after December 31, 2026, users will be paying both borrowing costs and protocol fees on top of their equity exposure.