Thread by @ed_Nuward

Last PART on @pendle_fi !

After the first two THREADs :
Part 1 :

https://twitter.com/ed_Nuward/status/1637217113248079872?s=20

Part 2 :

https://twitter.com/ed_Nuward/status/1637389609544962048?s=20

where we saw the principles of the protocol, let's see the last part on the Tokenomics of the @pendle_fi project.

So let’s dive into it !

THREAD 🧵🧵🧵

Let's start by watching TVL on @DefiLlama, we see a strong increase in this TVL from December 2022.
Surely the beginning of the #LSD narrative.

Logically @pendle_fi takes strength on this narrative because it allows to trade Yields from #LSDs.

Logically, the price has also had the same evolution as the TVL (narrative LSDs).

The distribution of the token is as follows:
- 10 % Incentives
- 65,1 % Circulating
- 5,7 % Team
- 19,2 % Ecosystem Fund

Team tokens vest up to April 2023, so be careful next month 5% of the supply will be released, which can create a slight dilution effect.

Weekly emission as of Oct-2022 is 667,705 with a 1.1% decrease each week until April 2026.

At this point, the current tokenomics allow for a terminal inflation rate of 2% per annum for incentives.

By staking and locking $PENDLE, you have a certain amount of $vePENDLE which decreases over time.
The $vePENDLE serves three purposes:

- 1: @pendle_fi collects a 3% fee from all yield accrued by YT.

By getting $vePENDLE you earn 100 % of these protocole fees. So the protocol collects no revenue.

All rewards are ditributed in $USDC (real yield).

- 2: $vePENDLE holders vote and direct the flow of rewards to different pools, effectively incentivizing liquidity in the pool they vote for.

Voting for a pool also entitles vePENDLE holders to 80% of the swap fees collected by the pool, distributed to all voters of the pool.

Base APY = Yield from 1
Max APY = Yield from 1 + 2
(see the graph)

$vePENDLE holders generate more returns (+10%) by also recovering swap fees by voting for a pool.

It is therefore important to vote to get some of these returns.

- 3 : If you LP in a pool while you are holding $vePENDLE, your $PENDLE incentives and rewards for all of your LPs will be further boosted as well, by up to 250% based on your vePENDLE value.

Personally, I don't think it's a good idea to enter now given the big increase we've had.

Many people can take profit (myself included), do as you want but be careful.

Personnaly I'll wait for a correction to increase my bag.

I think in the long term, the TVL of the protocol will increase with the LSDs narrative which for me will be one of the biggest narratives.

So more revenue for stakers !

If you buy $PENDLE I advice to put them to work, you have 100% of the fees generated by the protocol and 80% of the swap fees if you vote, that's huge!

The max supply is soon reached so no big risk of dilution.

Personally, I intend to recharge my bag at the first correction and put in staking to get the various revenue of the protocol.

I'm not telling you to buy, think, understand and then make a decision.

mention :
@DeFi_Made_Here
@Chinchillah_
@defi_mochi
@phtevenstrong
@DefiIgnas
@TheDeFinvestor
@LouisCooper_
@PowerHasheur
@crypthoem
@OnchainDataNerd
@cryptORicard0
@CryptoTea_
@crypto_linn
@Layn_io
@Faycy_crypto

I hope you enjoyed it, don't hesitate to let me know in the comments, without forgetting to like and RT the first tweet of the thread!

Be strong 💪
#Cryptocurency #DEX #pendle #Arbitrum #RealYield #yield #blockchain #project #fees #earning

https://twitter.com/ed_Nuward/status/1638069990413697026?s=20