The world is witnessing finance being reconstructed on open rails, with decentralized finance having the prospect to become an independent financial system. In a flourishing and mature capital market, yields have the potential to be traded in the form of bond coupons, interest rate swaps or other financial instruments. Pendle aims to assist in realizing this next milestone by becoming the one-stop destination for yield trading.
What is Pendle?
Pendle is the first protocol to enable tokenizing and trading of yield bearing assets. By splitting the asset to a Principal Token and Yield Token, Pendle aims to give users the opportunity to leverage on yield or lock-in future yield for upfront cash, while offering traders direct exposure to future yield streams without the need for an underlying collateral.
Pendle is bringing the six trillion dollar fixed-income industry into DeFi. The tokenomics of the project appear to be competent. Moreover, all the VC tokens are unlocked which means there is no more VC dump in the future.
Pendle is a low market cap gem with high upside potential and can be checked on https://www.coingecko.com/en/coins/pendle. Apart from that, the project is partnered with several reputable projects such as OlympusDAO, Redacted, TraderJoe, Aave, and Benqi.
Permissionless listing & Superfluid Liquidity
Pendle is building towards a future that is not inhibited by walled gardens. Pendle at its early stage relies on the team to analyze and generate forges to support each new type of asset. While it is not gated, the difficulty involved means the team is the de-facto decision-maker on which asset can or cannot be traded. PendleV2 is moving towards enabling permissionless support for any yield-bearing asset by implementing EIP-5115. In aggregate, this signifies that anyone can create a new pool with any asset and provide liquidity without the concern of Impermanent Loss.
The protocol is also heading towards superfluid liquidity, unlocking the potential for yield-bearing assets. Developers can leverage Pendle’s framework to create or build on top of yield tokens, freely producing a pronounced ecosystem and handing the reins to the community to scale the protocol. With this, Pendle aims to be the Uniswap of yield to continue to grow without limits from the Pendle team.
PendleV2: A Better Experience and Utility
Pendle took note of the pain points from their community and has built an enhanced user interface to accommodate users regardless of their background in Finance. PendleV2 will have a simple and pro mode. Simple mode will detach the complexities, creating a simple and clear ability to buy assets at a discount. Pro mode caters to the experienced class to create advanced strategies such as leveraging exposure to yield or having a fixed yield with low-risk, stable returns. vePENDLE was also introduced as governance, taking inspiration from Curve’s veCRV success but with additional modifications.
Pendle after its V2 launch is now looking forward to growing their protocol with various partnerships within the crypto space. They have partnered with prominent DeFi protocols in the past and are continuing to do so for their PendleV2 launch. They recently received support from FRAX, Convex, Lido, Kyber Network, LooksRare and other ecosystems. This proves their commitment to working with other protocols to forge strong communities for DeFi.
Pendle also has big plans down the pipeline. The team continues to partner with a handful of new protocols and is considering expanding on new chains to increase their reach. There are additional conversations on treasuries and fund managers to explore Pendle’s institutional use case and eventually break into the trillion-dollar fixed income market.
Where To Trade PENDLE Tokens
Presently, Pendle is traded not only on different centralized exchanges such as Crypto.com, MEXC and Gate.io but also on decentralized exchanges such as Sushiswap and TraderJoe.