Thread by @_Jonahw

Excited to publish our full investment thesis on @pendle_fi

Link to full memo:

Here’s the top 4 reasons why Pendle is becoming one of DeFi’s most valuable protocols 👇docsend.com/view/f88bp9bmd…

1⃣ Tokenized yield is a massive market and

LSDs / LRTs play an key role in DeFi by creating a flywheel 🌀

> LSDs & LRTs used as DeFi collateral
> Drives positive yield into DeFi
> Drives more DeFi activity
> Creates more yield

Pendle solves a key problem here

> ETH staking yield is variable rate and duration
> Yield swaps enable necessary structure

We conservatively expect to grow by >$80b in the next few years

2⃣Pendle recently caught fire and proved PMF, with traders using it to speculate on future LRT airdrops and secure high(!) fixed-rate returns

We expect Pendle to capture similar opportunities from other new categories launching high-yield products, like BTC L2s 👀

3⃣Pendle owns a dominant share of the yield swaps market today.

We expect this to continue as Pendle attracts new products to launch high-yield swap markets and grow TVL together

Overall we think Pendle offers very good upside though of 2027E

and we eagerly await Pendle’s V3 launch (hopefully) later this year

@tn_pendle, @imkenchia and the whole team are extremely dedicated builders.

It's a pleasure to work with them!

~ none of this is advice of any kind ~

See the full disclaimer on page 18 of the memo linked above; it also applies to this tweet