In a decentralized financial world where the future is created moment by moment, Pendle comes to tip the scales with an innovative feature: turning future yields into freely tradable assets.
Origin and Mission
Pendle Finance was launched in June 2021 by an anonymous team (such as TN Lee, GT, YK, and Vu). The idea is simple yet revolutionary: separating yields from the asset itself, creating new financial opportunities for investors and speculators.
How it works
The user enters with an asset that generates yield—like stETH—to convert to:
PT (Principal Token): Represents the underlying asset.
YT (Yield Token): Represents future yields.
These two tokens can then be traded via an automated market maker (AMM) specific to Pendle designed to handle the time characteristics and temporal decay of yields.
What sets it apart:
Full control over yields: Choose between locking in today's yield or speculating on future yields.
Smart liquidity provision: Liquidity providers can earn trading fees while receiving incentives from PENDLE tokens.
vePENDLE system: Freeze your tokens to gain voting rights, profits from trading fees and yields, and double incentives for liquidity providers.
Growth and Expansion
Pendle has shown a significant rise in total value locked (TVL), occasionally exceeding $4 billion or more. The system has rapidly expanded across chains like Ethereum, Arbitrum, Optimism, and BNB Chain.
Advanced use cases:
Fixed yields: Buy PT at a low price today and redeem it later simply to secure a guaranteed yield.
Yield speculation: You can buy YT if you expect yields to rise, or sell it if you expect a decline.
Exposure to RWA: Pendle has entered the real asset market by employing tokens such as sDAI and fUSDC, to expand yield options beyond traditional DeFi.
👈💡Simplified Analysis
Current price: approximately $5.28 with slight fluctuations, with a daily increase of about 20%. Trading range during the session between $4.37 and $5.39.
Short-term Technical Analysis
Price Movement: After a period of stability, PENDLE recorded a notable increase today, indicating positive upward momentum.
Important resistance levels: The $5.4 – $5.5 level is an initial resistance barrier, a sustained breakout may pave the way towards $6 – $6.5.
Essential support levels: The $4.5 – $4.7 area is the first real support, with the upper level at $5. If the price fails to maintain $5, it might retest $4.5.
