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 π₯
But here's the best thing, anyone can do it too π₯
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.
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/0xd08a9dfa1β¦
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/0xd08a9dfa1β¦
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%) β
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%) β
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.
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:
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 πͺ
https://twitter.com/pendle_fi/status/1633543153981734912
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.
Once again, the intern has failed to math. Another round of cram school he goes.
β’ β’ β’
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