$PENDLE TVL went from $17M to $150M in the past 6 months.
I have been a fan of $PENDLE for a while now. It's a must addon to your portfolio. Why you ask?
In this thread, I will explain @pendle_fi and what it does.
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I have been a fan of $PENDLE for a while now. It's a must addon to your portfolio. Why you ask?
In this thread, I will explain @pendle_fi and what it does.
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Introduction:
Pendle is a platform where people can split their crypto investments into two parts: the initial amount they put in & the future profits they expect to earn. They can then trade these parts separately, giving them more flexibility and new ways to make money.
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Pendle is a platform where people can split their crypto investments into two parts: the initial amount they put in & the future profits they expect to earn. They can then trade these parts separately, giving them more flexibility and new ways to make money.
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Key Concepts:
•Yield Tokenization
•AMM
•vePENDLE
•Fees and Rewards
•Tokenomics
•Conclusion
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•Yield Tokenization
•AMM
•vePENDLE
•Fees and Rewards
•Tokenomics
•Conclusion
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Yield Tokenization
Yield Tokenization is the process of separating the yield from the principal of an interest-bearing asset. This process results in two separate tokens:
•Ownership Tokens (OTs)
•Yield Tokens (YTs)
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Yield Tokenization is the process of separating the yield from the principal of an interest-bearing asset. This process results in two separate tokens:
•Ownership Tokens (OTs)
•Yield Tokens (YTs)
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OTs represent the principal of the yield-bearing asset. They can be redeemed for the underlying asset after the yield has matured.
YTs represent the future yield of the yield-bearing asset. They can be sold or traded before maturity.
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YTs represent the future yield of the yield-bearing asset. They can be sold or traded before maturity.
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Automated Market Maker (AMM)
Pendle uses an AMM model for trading OTs and YTs. This model provides liquidity and enables efficient trading of these tokens.
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Pendle uses an AMM model for trading OTs and YTs. This model provides liquidity and enables efficient trading of these tokens.
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vePENDLE
vePENDLE is the governance token of Pendle. By locking PENDLE tokens, users receive vePENDLE, which gives them voting rights in the protocol. The amount of vePENDLE received is proportional to the amount and duration of PENDLE staked.
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vePENDLE is the governance token of Pendle. By locking PENDLE tokens, users receive vePENDLE, which gives them voting rights in the protocol. The amount of vePENDLE received is proportional to the amount and duration of PENDLE staked.
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Fees and Rewards
Pendle has two main sources of revenue:
•Swap Fees: Fees generated by all swaps on Pendle’s AMM.
•YT Fees: Pendle collects a 3% fee from all yields accrued by all YT in existence and yields from matured, unredeemed OTs.
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Pendle has two main sources of revenue:
•Swap Fees: Fees generated by all swaps on Pendle’s AMM.
•YT Fees: Pendle collects a 3% fee from all yields accrued by all YT in existence and yields from matured, unredeemed OTs.
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These fees are distributed to vePENDLE holders, incentivizing participation in the protocol's governance.
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Tokenomics
Pendle's tokenomics are designed to ensure the long-term sustainability of the protocol. The protocol uses a mechanism called "incentive channeling," where vePENDLE holders can vote for and direct the flow of rewards to different pools.
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Pendle's tokenomics are designed to ensure the long-term sustainability of the protocol. The protocol uses a mechanism called "incentive channeling," where vePENDLE holders can vote for and direct the flow of rewards to different pools.
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Additionally, vePENDLE serves as an additional sink for reducing the supply of PENDLE tokens, thereby increasing the token's stability and the overall robustness of the protocol.
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Conclusion
Pendle continues to innovate in the DeFi space, with plans to introduce more features and mechanisms to enhance its protocol. As the industry matures, governance may propose changes based on the evolution of ecosystem best practices.
END.
Pendle continues to innovate in the DeFi space, with plans to introduce more features and mechanisms to enhance its protocol. As the industry matures, governance may propose changes based on the evolution of ecosystem best practices.
END.
Likes and RTs are appreciated đź’™
Tagging some $PENDLE lovers you guys can follow:
@CryptoLimbo_
@Flowslikeosmo
@crypto_linn
@Louround_
@SmallCapScience
@defi_mochi
@TheDeFISaint
Tagging some $PENDLE lovers you guys can follow:
@CryptoLimbo_
@Flowslikeosmo
@crypto_linn
@Louround_
@SmallCapScience
@defi_mochi
@TheDeFISaint
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