$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.
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.
https://twitter.com/HighCoinviction/status/1394795639272353793
The recent updates further expand the use cases for @pendle_fi and also introduces a meaningful change to token economics for $PENDLE.
The two updates are:
1) Introduction of yield tokenization for SLP shares
2)(Pe,P) rewards program
The two updates are:
1) Introduction of yield tokenization for SLP shares
2)(Pe,P) rewards program
Starting Aug 19th, Pendle will allow traders to speculate on underlying trading activity in crypto in a more capital efficient way vs just longing a DEX.
The higher the trading volume, the higher the yield and vice versa.
The higher the trading volume, the higher the yield and vice versa.
Traders will be able to speculate on trade swap fees, while hedging any risk of IL.
By selling the OT SLP token and holding onto the YT SLP token, they will have pure exposure to the swap fees without the risk of impermanent loss.
This is the first innovation of its kind.
By selling the OT SLP token and holding onto the YT SLP token, they will have pure exposure to the swap fees without the risk of impermanent loss.
This is the first innovation of its kind.
The yield tokenization of SLP tokens further expands the TAM for Pendle and supports the LT thesis that the protocol could emerge as one of the leading AMMs for any time decaying asset in the future.
However, that is not the only exciting thing in the most recent update.
The recent change in token economics via (Pe,P) is huge and will be good for $PENDLE price.
The recent change in token economics via (Pe,P) is huge and will be good for $PENDLE price.
Users will be able to take their $Pendle / $ETH SLP shares and earn additional yield on top of providing liquidity.
As users deposit SLP- $Pendle / $ETH into Pendle; YT and OT tokens will be minted and the YT and OT SLP tokens will be traded against $PENDLE.
As users deposit SLP- $Pendle / $ETH into Pendle; YT and OT tokens will be minted and the YT and OT SLP tokens will be traded against $PENDLE.
This means that those who provide liquidity for SLP – Pendle /ETH will have exposure of OT, YT tokens and $PENDLE.
The introduction of (Pe,P) will be advantageous:
1)Incentivizes deeper liquidity for $PENDLE, which helps support price and also allow larger funds to build positions
2)Provide useful liquidity to the protocol
1)Incentivizes deeper liquidity for $PENDLE, which helps support price and also allow larger funds to build positions
2)Provide useful liquidity to the protocol
All in all, good for $PENDLE price. See you in the pools soon.
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