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Pendle, a DeFi yield tokenization protocol, said it has changed PT principal token looping fees to an automatic adjustment model set at around 10% of looping APY, with the maximum fee capped at 10 basis points, or 0.1%.
PT looping automatically repeats the process of borrowing assets against PT as collateral, buying more PT, and posting it again as collateral to increase investment size. The project said the change will reduce fee burdens versus the previous structure when PT is nearing maturity or APY is low.