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Mar 1, 2023 β€’ 9 tweets β€’ 4 min read β€’ Read on X
Pendle can let you weaponize assets like #LSD to get an outsized return.

With the right moves and some Pendle magic, you can potentially earn ~6x profit vs. the old hold and wait πŸͺ„
Before we get into the juicy 🫐 details, we need to first understand YT.

Holding a Yield Token (YT) gives you the right to receive all the yield generated by the underlying asset up to maturity.

Holding 1 YT-rETH-WETH for instance lets you receive yield from 1 rETH-WETH.
As of now, the Long Yield APY of YT-rETH-WETH is at ~46.5% APY.

This number estimates the amount of yield generated from your YT purchase, assuming the Average Future APY of rETH-WETH stays at the current level (8.47%) up until maturity.
Since Implied APY (6.3%) is less than the Underlying APY (8.47%), it seems that YT might be potentially undervalued here, again this is assuming that the Average Future Underlying APY will stay at this level.

Let's see what the Pendle Calculator has to say about this...
With a capital of 3 $ETH, buying YT can potentially net you a profit of 1.11 $ETH at the current price.

In contrast, holding rETH-WETH itself will only earn you 0.209 $ETH within the same time period.

Once again, this is assuming the Average Future APY of rETH-WETH is 8.47%.
As long as it stays well above the Implied APY of 6.3%, the Average Future APY can stay at the current level, increase or even decrease slightly and you will STILL be in profit.

Below are examples of when the Average Future APY:
⬆️ Increases to 9.5%
⬇️ Decreases to 7%
If you think that the Average Future APY will drop way below the current level to near or below the Implied APY of 6.3%, then just holding would be a better strategy.
So what's the right move? It all comes down to whether you're Team Bull or Team Bear for #LSD yield.

To be sure, always make use of the Pendle Calculator to help you estimate the potential returns.
Yield trading has always been the backbone of institutional hedging. In the right hands, it can be a very powerful tool that can help supercharge returns.

So anon, what's your #LSD play going to be?

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More from @pendle_fi

Jan 25
Introducing Pendle LRT's newest addition - rsETH by @KelpDAO πŸš„

With this, you'll finally be able to start racking up Kelp Miles faster than anyone else, while earning great yields and rewards from Pendle at the same time. πŸš€
Liquid restaking with rsETH earns you Kelp Miles and @EigenLayer Points on top of the usual yields.

rsETH on Pendle earns Kelp Miles at a bonus 3x rate for the 1st month.

For YT-rsETH, this potentially means some serious boost for your Miles, more than what we've seen in eETH: Image
For LPs, that would mean a chance for you to capitalize on these rapid yield swaps, earning multiple streams of fees and rewards:

βœ… EigenLayer Points
βœ… Kelp Miles
βœ… ETH Staking Yield
βœ… Restaking Yield (once live)
β˜‘οΈ Swap Fees
β˜‘οΈ PENDLE incentives
β˜‘οΈ PT-rsETH Fixed APY Image
Read 7 tweets
Oct 10, 2023
Education is the passport to the future, and this is even more true for Pendle and yield-trading.

Starting today, you'll be able to embark on a journey of self-improvement to master the art of yield-trading, conquering yields like never before.

Introducing Pendle Academy πŸŽ“ Image
The Academy is a comprehensive, one-stop-shop for all of Pendle's yield trading secrets.

Whether you're an absolute Beginner who's just starting out, an intermediate journeyman or an expert yield trading guru - there's a path tailored just for you πŸ›£οΈ Image
From the foundational basics everyone needs to get started, complete with easy-to-follow, illustrative analogies to facilitate your understanding Image
Read 8 tweets
Jul 21, 2023
The GREATEST trade of all time on Pendle?!

0xfab just smashed the ETH staking yield of all staking yields, and is now on track to earn a whopping 88% APY.

For context, the current staking yield on Lido is only 4.06% APY, making this a 22x outsized return.

How? Pendle YT 🌈 Image
For those of you who missed the previous "best yield trade of all time", you can check out the thread below.

But that's old news now.

And unless you're getting >88% APY from ETH #LST, the king is dead, long live the king πŸ‘‘
Here's what happened this time πŸ‘‘:

1. Spent 0.88 wstETH
2. Bought 68.5 YT-wstETH (Dec 2023 maturity) - 78x yield exposure to wstETH

That means that from now until maturity (or whenever YT is sold), 0xfab will be receiving ALL of the yield generated by 68.5 wstETH. Image
Read 12 tweets
Jul 18, 2023
Introducing Pendle Earn
Let’s face it, DeFi fixed-rates and yields haven’t been the easiest to understand.

With Pendle Earn, we set out to change this, making simple yet powerful deposits accessible to everyone. Similar functionality to centralized products, yet fully on-chain.
You no longer need to be an expert to earn like a pro

Pendle Earn is all about making yields easy and convenient.

A streamlined experience that helps you earn and grow the Pendle way, without getting lost in mumbo-jumbo technicalities. Image
Read 6 tweets
Jul 11, 2023
Is this the best yield trade of all time?

With a capital of just $10.4k, a Pendle user is now earning yield from $327k πŸ”₯

That's ~32x of leveraged capital (the highest we've ever seen πŸ‘€) with NO liquidation risks.

Here's the thing - it's easy, and anyone can do it too
Before we dive into this superstar trade, if you're not familiar with the concept of yield trading yet, here's a quick and simple overview of what it is:
So what happened?

Implied APY for the new wstETH pool (2024 maturity) on @Arbitrum dipped to 3.43% on 5 July.

Noticing this opportunity for potentially undervalued YT, 0xe9b bagged them up with a 5.55 ETH clip πŸ›οΈ
Read 9 tweets
Jul 10, 2023
Ahh the good o' days of #DeFi summer, back when 6-digit yields were the norm β˜€οΈ

How sweet it would have been to lock in these ultra-high, fleeting yields...

With Pendle, you can finally fell the beast of volatility and shield your precious yield in the safe embrace of PT.
First, a refresher - what's PT?

On Pendle, yield from yield-bearing tokens like stETH is separated.

So imagine now that stETH without all of the future yield that it'll generate, stETH (i.e. the principal) should be cheaper now, right?
This concept isn't new.

Interest rates are commonly stripped from bonds and traded. These bonds are then transformed into zero-coupon instruments, which work similarly to PT.

In fact, this is one of the biggest sectors in traditional finance, up to $400T of notional value.
Read 15 tweets

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