I am not going to lie. This project was on my watch list for a very long time.
And now they have delivered their V2.
We all love to stake. Now imagine you can separate your APY and your initial investment and trade both assets separately.
It sounds confusing at the beginning, but once you understand it is a genius idea.
The project is called PENDLE.
According to our simulation in this yield range, Pendle V2 improves capital efficiency by over 70x, making the liquidity of that pool equivalent to 70x deeper than a V1 pool of the same size.
I am not even sure how to explain it simply. I will try one more time.
You can buy a token for a cheaper price than anywhere else on the market. The reason? Because you are buying a token from the future. Yeah, you read that correctly. In, let's say 12 months, that token would be yielding around 10% APY. That means you can now buy a token from the future for around 10% cheaper. The mechanics are much more complicated, so please read all about it on their official sites.
You can actually trade the yields on their website - because the YIELD changes daily in DeFi!
How crazy is that? It is still blowing my mind that it is even possible.
And then there is pool staking, which I must explore more. For now, I just used their ETH pool and all worked fine for me.
Other pools available:
- USDC
- FRAX
- LOOKS
Fees are distributed in stables, uncorrelated to PENDLE. This means that by owning a % of the supply, you are taking a bet on the future fee growth of the protocol.
