$PENDLE just announced some massive changes to the protocol, which I expect to drive material fundamental growth for the protocol over the coming months.
Interest rate derivatives is an untapped market in DeFi and there is continuous innovation happening here.
👇 to learn more.
Here is a quick recap on @pendle_fi in case you forgot.
COMP will likely vastly outperform ETH & DeFi over the next 6 months given:
1) Compound Treasury - more liquidity, better borrowing rates, more adoption
2) Compound Chain - more chains, more collateral, larger TAM
Institutional adoption is here & COMP is at the center of it 🧵
' @compoundfinance is an ETH-based project that is focused on establishing various money markets on Ethereum.
The protocol aggregates a bunch of assets into a single pool so that suppliers & borrowers can interact directly with the protocol as opposed to with a third party.
This is a superior model for collateralized lending vs. how it is currently done traditionally by banks given:
1) It eliminates the need for matchmaking
2) Terms are set algorithmically, which removes the need for negotiating terms and increases trust
$PENDLE is the most undervalued low cap gem in DeFi (~$20mm mkt cap).
Pendle will introduce yield derivatives to the crypto economy as well as a novel AMM specialized for trading time decaying assets.
Behold a brand-new narrative and the next major evolution of DeFi.
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Pendle will be the first protocol that will enable the trading of tokenized yields on Ethereum.
For users, Pendle will allow them to tokenize their yields and sell it for upfront cash.
For traders, Pendle will provide the most capital efficient way to speculate on yields.
Pendle enables holders of yield generating assets (e.g. lending deposits) to break out their deposits into an ownership token (OT) and a future-yield token (XYT).
OT represents a claim on the underlying asset.
XYT represents a claim on future yields up to a certain date.