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Pendle Weekly Digest: Yield Tokenization, Liquidity Migration, and Flash Staking - Seize High-Yield Opportunities

Pendle Weekly Digest: Yield Tokenization, Liquidity Migration, and Flash Staking - Seize High-Yield Opportunities

BlockBeatsBlockBeats2024/11/26 09:52
By:BlockBeats

Users need to closely monitor liquidity migration and yield pool adjustments to seize yield opportunities

Pendle officially launches Base, with initial support for two assets: Coinbase ETH (cbETH) and Lombard BTC (LBTC). Additionally, Pendle will also introduce the Morpho Pendle wBTC pool. Here is a recap of last week:


Pendle BTCFi TVL Surpasses $1 Billion


Pendle's BTCFi TVL crossed $1 billion last week. With the continuous growth of BTCFi shares, Pendle currently holds approximately 41% of the market's TVL. With the increasing focus on BTC in the market, BTCFi still has significant untapped potential.


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Deep Dive into Pendle's PNL


Whether it's DeFi, CeFi, or traditional finance, the results of profit and loss calculations follow a standard financial statement template, primarily comprising realized PnL and unrealized PnL. In traditional finance, PnL is usually calculated based on standard transaction types (such as buys, sells, longs, shorts, option premiums, investment income/loss, fees, etc.). This allows traditional finance portfolio management software to handle data through transaction-based analysis. In CeFi, while each cryptocurrency exchange and financial service provider has its unique settlement and nomenclature scheme, their transaction records can still be allocated based on a standard format for transaction record analysis and reconciliation.


The situation in DeFi is similar to CeFi but with some differences, mainly reflected in the following activities:


· Swap Transactions: Similar to transactions in CeFi, transaction records in DeFi appear on the blockchain ledger, for example, swapping WBTC and ARB for USDC.


· Interest Generated from Lending: Similar to lending in traditional finance, but there are no transaction records on the blockchain ledger, and interest is recalculated and settled on each block.


· AMM Fee Income and Impermanent Loss: This is the concept of providing liquidity in DeFi, which does not have a corresponding concept in traditional finance, and there are no transaction records on the blockchain ledger.


As a yield tokenization and trading protocol, Pendle involves various types of strategies, each with different risk and reward characteristics, catering to users of different capital sizes and risk preferences. The specific strategies include:


· Principal Token of Fixed Yield (PT): Pendle utilizes principal tokens to generate fixed income, similar to traditional fixed income products in finance.


· Yield Token (YT): This type of token represents the right to streaming income but gradually devalues over time, allowing holders to receive the underlying asset's income (along with other reward points).


· Liquidity Pool (LP) Strategy: In Pendle's AMM, the LP strategy maximizes income by combining principal tokens (for fixed income) with the underlying asset.


· Reward Points: Pendle also enables users to earn reward points, which may eventually convert to airdrops, adding to the protocol's potential rewards.


Pendle's yield tokenization strategy adds a new dimension to traditional income calculation methods, especially in handling fixed income, liquidity pool strategies, and degressive yield tokens over time. For investors, these strategies offer new ways of capital utilization and risk management.


In conclusion, Pendle is a decentralized yield trading protocol. By splitting income-generating assets and tokenizing them into principal portions (PT) and yield portions (YT), Pendle creates a yield market, allowing users to speculate on these two portions separately. Thus, users can execute advanced yield strategies such as fixed income and long-term yield.


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All mETH Accrual of Powder Points Will Cease in Approximately 7 Days


Users need to transfer mETH to cmETH as the Powder points (currently used for reward accumulation) of mETH will stop accruing points. Upon completing the transfer, users can continue participating in relevant rewards and yields. Meanwhile, staking rewards will continue to accrue as usual.


For Pendle users who wish to continue or start accumulating Powder points, please refer to Pendle's cmETH pool:


Pendle Weekly Digest: Yield Tokenization, Liquidity Migration, and Flash Staking - Seize High-Yield Opportunities image 1


sUSDS Liquidity Migration Notice


sUSDS liquidity providers in the SkyEcosystem need to migrate their liquidity to a new pool, which has been optimized according to the latest Sky Savings Rate update to better support PT/YT trading. The migration steps are as follows:


· Step 1: Remove dual liquidity from the current pool.


· Step 2: Deposit dual liquidity into the new pool.


· Step 3: After migrating sUSDs to the new pool, if there is remaining PT-sUSDS, users can choose to hold PT until maturity or transfer it to the new pool.


If no migration is done, users will miss out on earnings, but their funds will remain secure. In addition, existing PT/YT holders do not need to take any action and can continue to trade normally in the new pool. Meanwhile, vePENDLE holders need to revote or support the new sUSDS pool.


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Earnings Opportunity Overview


Pendle x Silo Collaboration, Enjoy a 22% ETH Discount


On November 12, 2024, a user with the address 0x7d5 purchased YT-spSILO for $8,820 (with a maturity date of March 27, 2025), becoming the current third-largest YT holder.


From now until the maturity date, 0x7d5 will receive earnings equivalent to depositing 1.98 million SILO, while the usual cost of depositing these SILO would only be $725,000.


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Solv XP Points Limited Time Boost


Corn SolvBTC.BBN (Maturity Date: December 26, 2024) will receive an additional 50% Solv XP before December 4.


This offer is applicable to YT-SolvBTC.BBN (Corn) as well as SY LP positions.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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