With the buzz around DeFi, heavy changes are springing up in every area that matter to us especially as it concerns how we make money. Have you ever received money for renting out your house, car, land, or even your household utensils? If you did, you would have definitely discovered how easy it was to make money and still have your asset returned to you after the expiration of the rental period. You get rental yield from houses, dividends from stocks, coupons from bonds, bank interest from cash and every other rentable asset you can think of. That is exactly what you get with Pendle. With Pendle, each one of your assets generates yield for you.
Pendle is here with a mind to build the next layer of DeFi on top of the various yield-generating assets which are rapidly springing up, allowing for the tokenization of yield, such that users can trade and hedge based on their risk appetites.
Pendle is a yield-trading protocol, enabling you to purchase assets at a discount or gain leveraged yield exposure without liquidation risk. In a more holistic outlook, The Pendle protocol enables the permissionless tokenization and trading of yield allowing anyone to obtain fixed yield or gain leveraged yield exposure without putting into consideration the risk of getting liquidated of your assets.
Pendle has got wonderful tokenomics to go with it. All VC tokens are already unlocked so there are no locked tokens anywhere. This means there will be no more VC dump in the future. So investing in it now is an investment which huge promises. It has got a circulating supply of 97 Million Pendle coins and a total supply of 232 Million.
With a current market cap of $6.09 Million as per Coingecko, Pendle is still definitely in its early stages and is a rare gem to get into at the moment. The price standing at $0.0625 is also a no-brainer that anyone wouldn’t want to sleep on. More so, Pendle’s current trading volume of $183,347 is also indicative of the enormous amount of interest it is generating.
In terms of partnerships and collaborations, Pendle is not a loner. They have partnered with reputable allies in the industry with reputable track records of innovation, integrity and vision. Traderjoe is one of their partners, the most active exchange that Pendle can be traded on. They have also partnered with OlympusDAO, Redacted, Aave, Benqi, Spartan, etc.
As per the fundamentals, Pendle aims to be the Uniswap of yield. With the launch of V2, Pendle is moving towards becoming Permissionless. three components make up Pendle’s system:
- Tokenization of Yield
- Pendle’s Automated Market Maker (AMM)
- Governance – which is still in the pipeline
Pendle users can deposit yield-generating assets into Pendle while minting Ownership Tokens (OT) and Yield Tokens (YT). OT represents ownership of the underlying asset, while YT represents an entitlement to the asset’s yield.
In TradFi, what Pendle does is similar to bond stripping. The principal and interest of bonds are separated, so OTs are equivalent to zero-coupon bonds, while YTs are the detached coupons.
Users can then trade asset yield by swapping YT on Pendle’s native AMM or trading OT on SushiSwap on Ethereum and TraderJoe on Avalanche.
In terms of security, our users have no need to worry. Pendle is very secure and trustworthy. We have 4 audits by top reputable auditors in the industry. Our investments were sourced from reputable Venture capitalists. Pendle is not a one-layer project- actually integrated by layer zero. We have implemented a multi-chain system that can allow our users to operate from any ecosystem they consider appropriate to them.
So what are you waiting for, Pendle is here for you with breath-taking gains…Jump in!
Disclaimer: This is a press release post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.
The post appeared first on Coinpedia
