How I think about PT-looping:
Each asset has an underlying risk premium. When the expected delta between the PT yield and borrow rate exceeds your required premium, then it makes sense to lever up as much as your portfolio allows.
You need to price:
-Underlying asset risk
-Pendle S.C risk
-Money Market risk
-Duration risk (if you are taking on variable debt)
In the case of hardcoded oracles, tail risk is borne by the lender, so you should discount that. In the case of market oracles, you need to also account for oracle /liquidation wicks risk.
How to do the risk pricing, and how to calculate the expected borrow rate is incredibly subjective, and also the secret sauce in all of this.
I'd love to share my models for some internet clout, but unfortunately it pays my bills. Maybe sometime in the future.
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