$PENDLE is a decentralized protocol focused on yield-bearing asset trading, allowing users to participate in future yield markets without holding the underlying assets. Its core mechanism splits yield-generating assets into two types of tokens: Principal Token (PT) and Yield Token (YT). PT represents the future redeemable principal, while YT represents the yield generated during the period. Users can trade these two tokens through AMM, flexibly choosing to lock in fixed yields or obtain floating yields.
Core Functions and Advantages
Yield Separation and Trading
After users deposit assets into Pendle, the system automatically generates PT and YT. For example, after staking ETH to obtain stETH, PT can lock in the principal due at maturity, while YT can be traded for the interest yield during the period. This design allows users to participate in the yield market without holding the underlying assets, making it particularly suitable for risk-averse investors.
Flexible Strategies
Fixed Yield: Holding PT until the maturity date allows for the redemption of the principal, similar to zero-coupon bonds, suitable for locking in long-term yields.
Floating Yield: Trading YT can speculate on yield fluctuations, for instance, buying YT when expecting an increase in certain protocol yields, and selling it when the expectation is the opposite.
Low Barriers and Liquidity
Pendle supports multi-chain deployment and integrates with mainstream protocols, allowing users to quickly access assets like stablecoins and LSD. Its AMM mechanism optimizes slippage, attracting a large number of liquidity providers.
No fan explosion will happen, nor will there be blind opening of elixirs.
It's all about seeking victory steadily, step by step. Those who want to profit should get on board quickly!
SUI TURMP BONK PEPE OM SOL PNUT NEIRO
