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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 🔥
But here's the best thing, anyone can do it too 🔥
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/0xd08a9dfa1…
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/0xd08a9dfa1…
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%) ⭐
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%) ⭐
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 🪔
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.
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