In the modern world of decentralized finance (DeFi), new and innovative protocols are constantly emerging, offering users unique opportunities. One such platform is Pendle ($PENDLE ) — a protocol specializing in the tokenization of future income from cryptocurrency assets. In this article, we will take a detailed look at what Pendle is, how it works, what benefits it provides, and why it attracts the attention of investors.
Pendle is a DeFi protocol built on the Ethereum blockchain and other networks (Arbitrum, BNB Chain, Optimism) that allows users to separate the underlying asset from its future profitability. This approach is similar to traditional financial instruments such as zero-coupon bonds or interest rate swaps. In the DeFi world, this means that the owner of a certain token, for example, stETH (Lido Staked ETH), can separate the principal (capital) from potential income (yield).
The Pendle protocol operates on the principle of "splitting" income-generating tokens into two separate tokens:
Principal Token (PT): This token represents the underlying asset, without rights to future income. Its value tends to approach the value of the underlying asset over time. For example, PT-stETH is stETH without the right to earn interest.
Yield Token (YT): This token represents exclusive rights to receive future income generated by the underlying asset until a certain expiration date. For example, YT-stETH grants the right to receive income from stETH until a specified date.
This model opens new opportunities for investors, as it allows them to:
Lock in returns: YT holders can sell their token before the expiration date, locking in current returns.
Increase returns: Users can purchase YT to gain access to future income at a discount. This allows them to amplify their exposure to potential profits without buying the entire underlying asset.
Create fixed income: Users can purchase PT at a discount, as its price will rise to 1 to 1 with the underlying asset by the maturity date. This creates an opportunity for investors to receive fixed income, similar to bond yields.
Cryptocurrency PENDLE: Governance and utility
$PENDLE is the native token of the Pendle protocol. It serves several important functions:
Governance: PENDLE token holders can participate in the governance of the protocol by voting on important decisions such as changing fees, adding new assets, or implementing new features.
Stimulation (Staking): Users can stake their PENDLE tokens to earn a share of the income generated by the protocol. This encourages long-term holding of the token and contributes to the stability of the network.
Liquidity: PENDLE is used to provide liquidity in pools, contributing to the efficient functioning of the market.
Pendle offers users unprecedented flexibility in managing their assets, allowing them to optimize returns according to their needs.
The protocol allows users to hedge risks associated with fluctuations in returns.
Pendle opens doors to new investment strategies that were previously available only in traditional finance.
Pendle ($PENDLE ) — is one of the most interesting and promising projects in the DeFi space. It brings tools from traditional finance into the decentralized world, providing users with powerful tools for managing profitability. Its innovative approach to income tokenization opens new opportunities for investors, allowing them to optimize their portfolios and create new investment strategies. While there are risks, as with any cryptocurrency investment, Pendle's potential to change approaches to DeFi investing is significant.
