Thread by @pendle_fi

With just $10,000, a Pendle user is now earning yield from $158,957, effectively leveraging capital 159x with zero liquidation risks.

But here's the best thing, anyone can do it too 🔥

Earlier today, the Implied Yield for newly listed @StargateFinance USDT pool onArbitrum sat at ATL of 4.19%, way below the actual APY of Stargate USDT at 5.84%.

Refresher - Implied Yield is the "price" of YT. The lower it is, the cheaper YT is.

This was the point of entry.

With 10,000 $USDT, the user initiated a transaction to purchase 158,957 YT-USDT.

1 YT-USDT gives you the right to collect yield generated by 1 USDT, which means this user just bought the rights to collect yield generated by a $158,957 position.

arbiscan.io/tx/0xd08a9dfa1…

Assuming the Underlying APY remains constant, the user is on track to earn $14,004, or $4,004 (40%) in profit.

Annualized, that's 31.5% APY for a stablecoin position, more than 5x what the user would have gotten from only holding the underlying (5.85%) ⭐

Another quick way to gauge the profitability of a long-yield is by looking at its Long Yield APY.

For instance, assuming the Underlying APY stays at this level, YT-ankrETH-WETH will yield you 137% APY.

The Pendle Calculator can also be helpful in helping you estimate the profit in various scenarios.

Here's what happens if the Underlying APY for #Aura ankrETH-WETH goes down to 10.5% instead:

If you need help getting started on your yield-trading journey, here's a simple ELI5 version of YT 🪔

For the simple farmers who prefer a more straightforward, no fuss, no IL approach, you can also provide liquidity to the same pool to earn up to 133% APY.

Even with just the base APY, the $USDT pool on Pendle currently offers some of the highest returns for a single-asset, stablecoin exposure, according to @DefiLlama

In short, there are plenty of opportunities on Pendle, you just have to know where to find em and catch em all.

15.9x ***

Once again, the intern has failed to math. Another round of cram school he goes.