If I were to inventory the recent hot events in the DePIN track, then the launch of eATH on Pendle would definitely be on the list.
eATH is a staking asset certificate launched by Aethir, representing the user's staking share on the platform. Users deposit ATH into the treasury, and the system will mint eATH at a 1:1 ratio, entering the staking period, with an entry included in the document.
This means that eATH will become a liquidity certificate highly linked to Aethir's enterprise-level GPU computing rental business.
As eATH is integrated into Pendle, it will no longer be limited to basic staking logic, but can be further decomposed into tradable, hedged, and leveraged DeFi structured components, which will be the focus of the next part.
❚ Structure and Gameplay of SY-eATH (Core of the Article)
After eATH is launched on the Pendle platform, it can be converted into a special format of yield asset called SY-eATH. This is a standardized yield token introduced by Pendle, designed to be compatible with its AMM and yield trading mechanisms.
SY-eATH can be further divided into two parts: PT-eATH and YT-eATH.
A simple overview in a flowchart:
$ATH
- (Staking) ⇾ eATH
- (Entering Pendle Packaging) ⇾ SY-eATH
- (Splitting) ⇾ PT-eATH + YT-eATH
(To ensure that even readers who have not been exposed to Pendle can understand, I will try to write this part simply; for advanced content, please search for related videos to learn.)
PT-eATH (Principal Certificate)
- This part represents the actual staked eATH in Pendle, which is an asset share that can be redeemed in the future.
- Since PT-eATH is usually sold at a discount in the trading market, the corresponding buyers are often participants who are optimistic about the long-term operation of the platform and hope to acquire staking shares at low cost.
- Users holding PT-eATH can redeem eATH at the original price upon maturity, thus realizing price difference gains.
- PT-eATH itself has no yield function; it only corresponds to the principal ownership, making it suitable for users who are willing to bear time lock in exchange for discounted arbitrage.
YT-eATH (Yield Certificate)
- This part corresponds to all reward yields generated during the staking period.
- It does not include the principal part, but continuously accumulates the reward distribution brought by eATH throughout the yield cycle.
- Users holding YT-eATH essentially purchase the rights to yields for a certain period. The value of YT-eATH depends on the platform's actual utilization rate and reward distribution, thus having certain volatility.
- Suitable for users who wish to capture high APY and are willing to bear volatility risk, it can also be used to lock in yields or hedge future yield fluctuations.
Decomposing into two completely different financial instruments allows users to perform combination operations based on their risk preferences and market judgments. Common strategies include:
1/ Fixed Income
- Selling YT-eATH to others is equivalent to locking in future yields in advance, obtaining a one-time cash flow. Suitable for conservative users or short-term arbitrageurs.
2/ Leverage Gain
- After splitting and selling the staked eATH for YT-eATH, retaining PT-eATH, and then using the discounted PT to restake for more eATH, forming a controllable circular leverage structure.
3/ Yield Hedging
- By buying YT-eATH, one can lock in the APY for a certain period, avoiding the uncertainty of yields that may arise during a decline in eATH usage.
Accessing Pendle is a key step for Aethir to integrate its staking system into DeFi, bringing more liquidity and strategic space to ATH.
❚ Supporting Logic Behind Yield
1/ Real Availability of Computing Resources
- Aethir currently connects over 435,000 GPUs, with platform utilization remaining above 70%, far exceeding the industry average.
2/ Stable Customer Source
- The platform's main clients are Web2 and Web3 enterprises, with services that have real usage scenarios, not short-term speculative users.
3/ Obvious Price Advantage
- The computing service price provided by Aethir is about 60% of that of traditional cloud services, which has long-term cost competitiveness.
4/ Clear Income Structure
- Annual recurring revenue has exceeded $141 million, coming from computing rental fees paid by enterprise customers, not platform subsidies.
❚ Summary: eATH has become a clearly structured and clearly sourced DeFi yield asset
The integration of eATH into Pendle marks a clear path for Aethir between DePIN and DeFi, greatly expanding Aethir's financial attributes.