Pendle is rewriting the rules of liquidity incentives. The ability to subsidize Yield Tokens (YT) is a massive game-changer for the ecosystem. Here is why this matters: 1/ The Yield-Principal Arbitrage: When you subsidize YT, more people want to buy it. Since the underlying asset is always the sum of the Principal Token and the Yield Token (YT), a surge in YT value forces the PT price down. A cheaper PT means a higher Fixed APY. Suddenly, you are offering a market-leading fixed rate that is impossible to ignore. 2/ Efficient Marketing spend: By subsidizing YT, you are effectively "leveraging" your incentives. YT represents only a small fraction of the total position cost, but it captures 100% of the yield/incentives. You get huge APY numbers with a fraction of the budget. 3/ The Money Market Loop: This is where it gets legendary. If the PT offers a superior fixed yield, it becomes the ultimate collateral. Imagine taking that discounted PT, depositing it into a lending protocol, borrowing against it, and looping back into more PT. The "Looping" potential here could send TVL to the moon in record time. 4/ Reduced Risk for Yield Longers: Subsidies mean YT buyers are less dependent on future airdrop speculation or organic yield fluctuations to hit breakeven. It creates a floor for yield traders, making the entire market more robust and liquid. @pendle_fi isn't just a yield protocol anymore; it’s a liquidity layer that protocols can use to "buy" TVL more efficiently than ever before. Keep an eye on this. The math is simply too good to pass up.