Thread by @Penpiexyz_io

What is @pendle_fi you may wonder?👀

Pendle Finance is a DeFi protocol built on @ethereum & @arbitrum that allows users around the world to manage and trade #yield. It's a #permissionless platform, open to anyone with internet access.💯

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@pendle_fi @ethereum @arbitrum In traditional finance, #yield is the income from an investment, like interest from a bond or dividends from stocks.✍️

In #DeFi, yield often comes from #ProvidingLiquidity or #staking tokens. @pendle_fi introduces a novel approach to treating yield.🔥

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@pendle_fi @ethereum @arbitrum Pendle wraps yield-bearing tokens into "Standardized Yield Tokens" (SY).📝

These #SY tokens are split into two components:👇

1️⃣ Principal Token (PT)
2️⃣ Yield Token (YT)

Representing the original investment and expected yield, respectively.☑️

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@pendle_fi @ethereum @arbitrum #PT is akin to the face value of a #bond, while #YT is similar to the #coupons that a bondholder #receives.💡

Pendle Finance's approach allows these components to be traded #separately via a custom V2 AMM.😎

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@pendle_fi @ethereum @arbitrum By #splitting the #principal from the #yield, @pendle_fi brings the vast traditional finance interest derivatives market, worth over $400 trillion, into DeFi.💰

This opens a multitude of #financial strategies and #opportunities.💎

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@pendle_fi @ethereum @arbitrum With @pendle_fi, users can buy assets at a #discount, lock in a fixed #yield, bet on #increasing yield, or a mix of these.⚙️

It empowers users to execute #advanced yield #strategies based on their risk appetite and market outlook.🔑

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@pendle_fi @ethereum @arbitrum Pendle Finance revolutionizes #YieldManagement in DeFi, enabling users to make more sophisticated decisions about their #crypto assets.📢

It's a transformative step towards #democratizing finance and making it accessible to all.⚖️

#PNP #PENDLE #ARB #ETH

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