A picture is worth a thousand words!

The illustration vividly explains how Pendle operates, how to make money using Pendle, and what the logic is behind it.

It is clear that it involves speculating on interest rate fluctuations, and it aligns very well with trading logic!

In the future, both CEX and DEX will undoubtedly have a new segment focused on interest rates. With Pendle's current position as the absolute leader in the Web3 interest rate derivatives space, Pendle will certainly have a place in the future!

Moreover, the interest rate derivatives space in traditional finance is already very mature.

When I last thought that interest rate trading would lead to new exchange products, I was unaware that Pendle had already planned to launch a product similar to a DEX: Boros.

Once developed, leveraging Pendle's existing advantages will surely make it a top-tier product.

However, what I look forward to more is that in the future, the PT/YT tokens split from Pendle can go live directly on CEX, bridging on-chain and off-chain, creating a new TradFi combining DeFi + CeFi + DEX + CEX.

Unlike the hedging mining or stablecoin mining strategies adopted during this period, I have shifted many DeFi positions to $PENDLE; I bet it can succeed!

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The core goal of Pendle is to achieve principal and interest separation, packaging income-generating assets into SY tokens, thereby standardizing these income-bearing tokens.

Then, SY tokens can be split into two parts: principal tokens (PT) and yield tokens (YT). Through Pendle's Automated Market Maker (AMM) mechanism, users can easily trade these tokens and engage in interest rate speculation.

Principal tokens (PT) act as a stable investment tool, helping users withstand market fluctuations and lock in fixed returns.

The price of PT tokens is usually lower than that of the original asset, and this price difference represents the fixed income that users can obtain. Users purchasing PT tokens are typically those who are cautious about future returns and wish to lock in the current yield rate.

Yield tokens (YT) are a leveraged tool full of opportunities and risks.

Users do not need to invest large sums of money to purchase complete income-generating assets; by simply holding YT, they can enjoy the rights to the income generated by the principal.