On January 3rd, PENDLE was listed on HotsCoin. Pendle Finance, a yield trading protocol, tokenizes and trades future yields by integrating top yield-generating protocols such as Aave, Compound, and Wonderland. Similar to traditional finance's bond securitization, Pendle divides income assets into tokenized ownership (zero-coupon bonds) and income components (interest tickets), providing users with innovative income trading opportunities. Currently, PENDLE is actively traded on HotsCoin.
I. Basic Information
Token Information:
- Circulating Supply: 235,885,588.245 PENDLE
- Total Supply: 258,446,028.245 PENDLE
- Circulating Market Cap: $301,167,448.352
- Fully Diluted Market Cap: $329,971,541.16
II. Key Events
- June 17, 2021: Pendle mainnet launch.
- April 16, 2021: Pendle completes a $3.7 million private funding round.
III. Product Highlights
Pendle offers various tools, including discounted asset purchases, yield speculation using YT, and participation in liquidity pools for additional earnings. It simplifies the user interface, optimizes the user experience, and facilitates user engagement in various yield strategies. The project has gained support from several prominent projects such as Lido, Frax, and Rocketpool.
IV. SY, PT, and YT
Pendle separates and tokenizes yields by marking them as YT and PT, representing income and principal, respectively, for interest-bearing assets (e.g., GLP, stETH, aUSDC). YT holders earn income, while users can buy PT at a discounted price based on market demand. SY serves as a token standard, providing a standardized API to package interest-bearing assets in smart contracts.
V. Unique AMM Design
A key innovation in Pendle v2 is the AMM trading platform designed for yield trading. Highly correlated assets reduce impermanent loss, and there is zero impermanent loss at maturity. The introduction of flash swaps enhances capital efficiency, enabling users to easily purchase YT and reduce slippage. vePENDLE allows token holders to stake $Pendle and receive a portion of protocol revenue.
VI. Recent Growth Drivers
With the Shapella upgrade, users will be able to extract Ethereum, raising the anchor price of liquidity collateral derivatives and increasing the utilization of DeFi protocols. Pendle has attracted support from well-known projects such as Lido, Frax, and Rocketpool.
VII. Gap in Fixed Income Products in the Market
Fixed income products are relatively scarce in the cryptocurrency field. Pendle fills this gap, providing investors with more effective and worry-free fixed income strategies.
VIII. Conclusion
Pendle offers users various tools to manage different yield strategies. Its standardized form makes it easier to integrate other interest-bearing assets, enhancing composability. Over time, Pendle is expected to attract more institutional capital, becoming a leader in fixed income products in the DeFi space.
HotsCoin will continue to monitor the project's ecosystem. Please note: Investment involves risks; the above report is for reference only and does not constitute investment advice. (Report Date: January 2024)
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