A couple months overdue – but I am proud to share that I have joined @pendle_fi to lead institutional growth!

But anon, why are we focusing on institutions?

How will institutions benefit from Pendle's yield markets?

A short 🧵 Quick recap: @pendle_fi facilitates new yield swaps markets by splitting yield-bearing assets (ie stETH) into Principal Token (PT) and Yield Token (YT).

PT is akin to zero-coupon bonds; YT is akin to claims on yield.

eg 1 YT stETH represents the yield of 1 stETH up to maturity.

Today, stablecoin yields via DeFi / CeFi lending are circa @ 5-8% APY*

while banks are offering 0%, 30Y USTs ~2%.**

question: where are these yields coming from?

A thread 🧵 *_higher end; non-degen farms; in-kind ie not including pool token incentives; Anchor UST excluded_

** _fair comparison given similar type of investment risks involved ie lenders take on credit & counterparty risks (+ smart contract risks for defi)_

Amazing read and a more amazing re-read. Yes ⏤ worth reading twice.

No thread summary could have captured all its gems, but these stuck with me 👇

Arthur in manages portfolio risk with barbell approach (long crypto and long interest rate vol)
1/

https://twitter.com/CryptoHayes/status/1367612419208450051

Terminology 101:

In this article, "convexity" refers to the non-linear relationship between A and B.

i.e. 1% increase in rates, -10% decrease in bond prices (the degree of change between A and B are non-linear)

(very loosely put)
2/

Phenomenal job by @CryptoCobain and @ledgerstatus.

Completely worth 1.5 hours watching while copiously taking notes 📝.. Highly recommend to watch the whole thing.

Here are some of my key takeaways ⏤ alpha leaks below (!!!)👇

/1

https://twitter.com/UpOnlyTV/status/1364547528587243525

Crypto foundations being built now for future.

Crypto is such a good analogy to 19th century British railroads. During 1840s huge bubble in railroad construction, whereby they laid tracks that they thought people would never use.

20 years later people used it all up.

2/