Let's talk about the basic logic of the coin $PENDLE

What impressed me the most about Pendle is that it allows ordinary users and small investors to participate in DeFi, which is truly commendable. Compared to many projects with high entry barriers and complex gameplay, Pendle is one of the few platforms that can accommodate the "small investor experience". In my opinion, this is its "moat".

My User Experience

I have tried buying PT (the fixed income part) a few times, and if the yield is not high enough, I generally won't use it for cyclical leverage. As for YT (the variable income part), I use it less frequently, after all, the volatility is too high and requires a greater risk tolerance.

Pendle's "explosion" is inseparable from the points economy

What Pendle relies on is the "uncertainty of returns"—only when returns fluctuate greatly does YT have value. In the early days, most DeFi yields were actually quite stable and predictable, so Pendle was not particularly prominent at that time.

But when the points mechanism became popular in various projects, the returns suddenly became difficult to predict and changed frequently, which just happened to align perfectly with Pendle's mechanism. It can also be said that the points have brought Pendle its moment of glory.

There are also risks

If the points mechanism wanes in the future and returns become "boring" again, then Pendle's trading heat may also decline. As market demand shrinks, both TVL and liquidity will be affected.

However, this may not necessarily be a fatal flaw. In the future, there might be other new incentive mechanisms that continue to create volatility in returns, and Pendle still has room to adapt.

Finally, let's talk about the team

The Pendle team has always given the impression of being "steady and solid"; they handle product details very well and can continuously iterate even during the overall downturn in DeFi, which is indeed rare.

Many people are asking about this coin, so I am posting a separate explanation, but I personally do not hold this coin—not because I don't believe in it, but because I feel that the cost-effectiveness is not high at the moment.