Pendle has experienced a mind-blowing 550% TVL gain this year, thanks to the popularity of LSDfi.
But that's just the beginning. I believe it has the potential to become the Uniswap of DeFi yield markets.
Here is your June 2023 deep dive on Pendle. 🧵
But that's just the beginning. I believe it has the potential to become the Uniswap of DeFi yield markets.
Here is your June 2023 deep dive on Pendle. 🧵
Let’s dive in…
· $PENDLE
· Price = $0.43
· Yield trading
· Ethereum, Arbitrum & Avalanche
· Market cap = $90m – Rank 259
· All time high = $3.83 (-89%)
· All time low= $0.03349 (1,198%)
· $PENDLE
· Price = $0.43
· Yield trading
· Ethereum, Arbitrum & Avalanche
· Market cap = $90m – Rank 259
· All time high = $3.83 (-89%)
· All time low= $0.03349 (1,198%)
Yield on your crypto assets will fluctuate over time, it tends to go up in bull markets and down in bear markets.
Pendle's aim is to allow you to maximise your yield through all market cycles.
Pendle's aim is to allow you to maximise your yield through all market cycles.
@pendle_fi is a permissionless yield-trading protocol where users can execute various yield-management strategies.
There are 3 main products of Pendle:
1. Yield Tokenization
2. Pendle AMM
3. vePendle
There are 3 main products of Pendle:
1. Yield Tokenization
2. Pendle AMM
3. vePendle
At the core of what Pendle does is yield tokenisation. Essentially, they split a yield bearing asset into
· YT = Yield of the asset
· PT = Principal of the asset
Here is a great thread by @LouisCooper_ to get you up to speed on the project.
· YT = Yield of the asset
· PT = Principal of the asset
Here is a great thread by @LouisCooper_ to get you up to speed on the project.
1. Revenue
There are 2 revenue sources for the protocol
1. Swap Fees- from Pendle’s AMM.
2. YT Fees- 3% fee from all yield accrued by YT in existence and yields from matured, unredeemed PTs.
There are 2 revenue sources for the protocol
1. Swap Fees- from Pendle’s AMM.
2. YT Fees- 3% fee from all yield accrued by YT in existence and yields from matured, unredeemed PTs.
Currently, 100% of the revenue from swap fees & YT fees is distributed to vePENDLE voters & holders (none goes back to the protocol).
All rewards are also distributed as USDC.
All rewards are also distributed as USDC.
While there is no data I could find on the daily revenues and fees, you can get an idea by looking at the vePENDLE Max APY from the dashboard- currently around 15%.
7 for Revenue.
7 for Revenue.
2. Treasury
There is no ‘Treasury’ as such for Pendle, but 14% of the initial supply was allocated to the Ecosystem Fund. This is currently worth:
· 46m $PENDLE @ $0.43
· TOTAL $19.6m USD
Note: no protocol revenues currently go to treasury.
7 for Treasury.
There is no ‘Treasury’ as such for Pendle, but 14% of the initial supply was allocated to the Ecosystem Fund. This is currently worth:
· 46m $PENDLE @ $0.43
· TOTAL $19.6m USD
Note: no protocol revenues currently go to treasury.
7 for Treasury.
3. Tokenomics
The initial token distribution for the project was:
· 11% - Investors
· 1% - Advisors
· 5% - Liquidity bootstrapping
· 17% - Team
· 14% - Ecosystem fund
· 50% - Incentives
The initial token distribution for the project was:
· 11% - Investors
· 1% - Advisors
· 5% - Liquidity bootstrapping
· 17% - Team
· 14% - Ecosystem fund
· 50% - Incentives
There are two main tokens that support the ecosystem:
· $PENDLE
· $vePENDLE
The release of PENDLE V2 in late 2022 introduced improved tokenomics and the implementation of ve(3,3)- a version of the Andre Cronje Solidly model.
· $PENDLE
· $vePENDLE
The release of PENDLE V2 in late 2022 introduced improved tokenomics and the implementation of ve(3,3)- a version of the Andre Cronje Solidly model.
Holders are incentivised to lock their PENDLE for vePENDLE for a few reasons:
· Receive a share of protocol revenue
· Vote for pools to channel incentives
· Receive swap fees from voted pools
· Receive a share of protocol revenue
· Vote for pools to channel incentives
· Receive swap fees from voted pools
You can lock your PENDLE for a minimum of 1 week to a maximum of 2 years.
If the protocol continues to grow, there is strong incentive flywheel for users to hold and lock their PENDLE, reducing circulating supply & lowering sell pressure.
9 for Tokenomics.
If the protocol continues to grow, there is strong incentive flywheel for users to hold and lock their PENDLE, reducing circulating supply & lowering sell pressure.
9 for Tokenomics.
4. Locked up funds
These are the current supply stats
• Circulating supply = 207m
• Max supply = 251m
• Market cap = $90m
• FDV = $109m
• Market cap/ FDV = 0.83
These are the current supply stats
• Circulating supply = 207m
• Max supply = 251m
• Market cap = $90m
• FDV = $109m
• Market cap/ FDV = 0.83
The supply of PENDLE is a hybrid inflation model.
Weekly emission will decrease by 1.1% each week until April 2026.
At this point, the current tokenomics allow for a terminal inflation rate of 2% per annum for incentives.
Weekly emission will decrease by 1.1% each week until April 2026.
At this point, the current tokenomics allow for a terminal inflation rate of 2% per annum for incentives.
As it currently stands, 83% of token supply is circulating in the market.
All team tokens were unlocked in April 2023, meaning any increase in token supply from now onwards is incentives and ecosystem building.
8.5 for Locked up funds.
All team tokens were unlocked in April 2023, meaning any increase in token supply from now onwards is incentives and ecosystem building.
8.5 for Locked up funds.
5. Use case
Total TVL is sitting at $83m– 5th amongst other yield protocols.
Pendle continue to benefit from the continued growth of the LSD narrative. A 26% gain in TVL over the last month while most protocols were in the red.
Total TVL is sitting at $83m– 5th amongst other yield protocols.
Pendle continue to benefit from the continued growth of the LSD narrative. A 26% gain in TVL over the last month while most protocols were in the red.
In TradFi, the interest derivative market is worth over $400 trillion in notional value, but it’s only accessible to the whales- funds & banks.
Pendle is bringing yield to the people through creating a decentralised and permissionless yield market.
8.5 for Use case.
Pendle is bringing yield to the people through creating a decentralised and permissionless yield market.
8.5 for Use case.
6. Roadmap
The last major upgrade was Pendle V2 which was launched in November 2022. It introduced significant upgrades including:
· Rebuilt AMM
· Improved tokenomics with variant of ve(3,3)- Andre Cronje model
· Standardised Yield (SY)
The last major upgrade was Pendle V2 which was launched in November 2022. It introduced significant upgrades including:
· Rebuilt AMM
· Improved tokenomics with variant of ve(3,3)- Andre Cronje model
· Standardised Yield (SY)
There are no fixed or published roadmaps. However, the following have been mentioned:
· Multichain expansion.
· New simplified tools for users to utilize the protocol’s variety of use-cases.
· New partnerships with market leaders.
7 for Roadmap.
· Multichain expansion.
· New simplified tools for users to utilize the protocol’s variety of use-cases.
· New partnerships with market leaders.
7 for Roadmap.
7. Team & funding
Pendle was launched in Jan 2021 and is led by a mostly anonymous team:
· TN Lee – Co-founder @tn_pendle
· Vu Gaba Vineb – Co-founder & dev @gabavineb
In 2021, the project raised $3.7m, led by Mechanism Capital.
All investor tokens have been fully vested.
Pendle was launched in Jan 2021 and is led by a mostly anonymous team:
· TN Lee – Co-founder @tn_pendle
· Vu Gaba Vineb – Co-founder & dev @gabavineb
In 2021, the project raised $3.7m, led by Mechanism Capital.
All investor tokens have been fully vested.
Pendle has the following partners and integrations:
· Wonderland Fi
· [Redacted] Cartel
· Chainlink
· Coinbase Pay
· Camelot DEX
· GMX GLP
· Layer Zero Labs
· 0xAcidDAO
8 for Team & Funding.
· Wonderland Fi
· [Redacted] Cartel
· Chainlink
· Coinbase Pay
· Camelot DEX
· GMX GLP
· Layer Zero Labs
· 0xAcidDAO
8 for Team & Funding.
8. Summary
TLDR summary for each category’s score out of 10:
7 - Revenue – 100% of protocol revenue to vePENDLE holders
7 - Treasury– $19.6m in Ecosystem Fund
9 - Tokenomics – Improved vePENDLE mechanics, Real yield
TLDR summary for each category’s score out of 10:
7 - Revenue – 100% of protocol revenue to vePENDLE holders
7 - Treasury– $19.6m in Ecosystem Fund
9 - Tokenomics – Improved vePENDLE mechanics, Real yield
8.5 - Locked up funds – 83% tokens in circulation
8.5 - Use case – $83m TVL, innovative use case
7 - Road map – V2 released in 2022
8 – Team & funding – $3.7m raised, mostly anon team
TOTAL- 8.0 weighted avg. score
8.5 - Use case – $83m TVL, innovative use case
7 - Road map – V2 released in 2022
8 – Team & funding – $3.7m raised, mostly anon team
TOTAL- 8.0 weighted avg. score
Pendle is one of the more exciting and innovative DeFi projects I have covered recently. I think the tokenisation of yield and implementation within DeFi has a huge potential for growth.
As it is a young protocol with a small market cap, there are of course risks involved.
As it is a young protocol with a small market cap, there are of course risks involved.
The purpose of this thread is for education and research- not financial advice. I am not a paid advisor or ambassador of Pendle.
Always DYOR before Apeing in. Here is a framework I prepared earlier.
Always DYOR before Apeing in. Here is a framework I prepared earlier.
The current macro conditions are still very choppy so stay safe out there frens.
Tagging some fellow Pendle heads who are all worth a follow
@0xTindorr
@SmallCapScience
@Flowslikeosmo
@TheDeFinvestor
@FungiAlpha
@0xSalazar
@crypto_linn
@_FabianHD
@CryptoShiro_
Tagging some fellow Pendle heads who are all worth a follow
@0xTindorr
@SmallCapScience
@Flowslikeosmo
@TheDeFinvestor
@FungiAlpha
@0xSalazar
@crypto_linn
@_FabianHD
@CryptoShiro_
جاري تحميل الاقتراحات...