Pendle Protocol

Pendle is a yield-trading protocol primarily built on Ethereum, with additional deployments on Arbitrum, BNB Chain, and Avalanche(check our Avalanche ecosystem screener). It enables users to:

• Trade yield on yield-bearing assets
• Earn fixed yield or gain yield exposure
• Tokenize ownership of yield-bearing assets

Recent Video Interview

Main points of the interview:

• Pendle as a platform for trading the earnings (yield) of an asset.
• Pendle was inspired by the high APYs during DeFi summer 2020, leading to the creation of a solution to lock in yield.
• The protocol's success in 2023 is attributed to iterative product improvements, strategic partnerships, and capturing market trends like liquid staking.

Key Features:

1. Yield Tokenization:

   • Wraps yield-bearing tokens into Standardized Yield (SY) tokens
   • Splits SY into Principal Tokens (PT) and Yield Tokens (YT)

2. Pendle AMM:

   • Facilitates trading of PT and YT

3. Advanced Yield Strategies:

   • Fixed yield earning
   • Long yield positions
   • Enhanced yield without additional risk
   • Customizable strategy combinations

Tokenomics:

• Native Token: PENDLE
• Total Supply: 251,061,124 PENDLE
• Use Cases:
  • Governance
  • Staking for vePENDLE (boosted rewards)
  • Protocol fee sharing

Token Distribution and Unlock Schedule:

• Team & Advisors: 20% (50,212,225 PENDLE)
  • 1-year cliff, then linear unlock over 3 years
• Investors: 21.5% (53,978,141 PENDLE)
  • 1-year cliff, then linear unlock over 2 years
• Community: 58.5% (146,870,758 PENDLE)
  • Includes liquidity mining, ecosystem fund, and treasury
  • Various unlock schedules depending on allocation purpose

Pendle aims to bring TradFi interest derivative concepts to DeFi, creating a robust yield market and unlocking new possibilities for yield management across multiple blockchain networks.

Pendle Price Analysis

As of November 24 2024 Pendle has a marketcap of $884M. This is {{percentagefromath}} from its all time high of $7.50. In terms of its tokenomics, there's a total supply of 258M with 63% currently outstanding. Keep in mind Pendle has a fully diluted value of $1.4B which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.

Summarized in part by ChatGPT 4 and Claude