Chainfeeds Summary:
Different asset types (government bonds, private credit, dividends, etc.) are brought together under a single agreement. There is only one reason: they all need a mechanism to convert floating returns into priced, lock-in fixed returns.
Article source:
https://x.com/stacy_muur/status/2049060475837587759
Article Author:
Stacy Muur
Opinion:
Stacy Muur: The stablecoin market has reached $310 billion, but most of this capital is simply sitting idle, generating no returns. However, this is changing as real-world returns are gradually moving onto the blockchain. This can be understood as government bond interest, private lending yields, and monthly dividends from Nasdaq-listed instruments. These assets were previously typically only available to brokerage clients and institutions. Now, a number of protocols have tokenized these assets, allowing DeFi users to earn the same returns. However, there's a problem. The returns on these assets are volatile, not fixed. One month it might be 11%, the next month it might be 9%. If you're a fund or finance department, you can't plan based on constantly changing interest rates. This is precisely what Pendle fills. When these tokenized RWA assets enter Pendle, the protocol allows you to choose: lock in a predictable fixed interest rate, or bet on the direction of a floating interest rate. The same asset, but the risk you choose to bear. The macro environment also supports this trend: tokenized RWA on public chains surpassed $23.6 billion in March, a 66% increase since January. JPMorgan Chase predicts that yield-generating stablecoins alone could attract $150 billion in funds. The CEO of Bank of America warned that $6.6 trillion in deposits could flow into stablecoins. Traditional banks already view on-chain yields as a real competitive threat. Leading financial institutions have already begun integrating with Pendle: Apollo's $785 billion credit fund is integrated through Ember; Strategy's STRC dividends are tokenized on Pendle through Saturn and Apyx; Paxos deployed its regulated Treasury bond stablecoin on Pendle, with a TVL exceeding $120 million within two months; Ethena's TVL on Pendle surpasses any other DeFi protocol, peaking at $4.71 billion. STRC is preferred stock issued by Strategy (formerly MicroStrategy) and listed on Nasdaq. Similar to bonds, after purchase, Strategy pays you an annualized return of 11.50% in cash monthly. Strategy uses the proceeds from its STRC funding to purchase Bitcoin, thus essentially bridging the traditional stock market with BTC accumulation. The interest rate initially stood at 9%, underwent seven increases, and stabilized at 11.50% in March. Both teams built stablecoins based on this cash flow, tokenizing dividends to allow DeFi users to earn yields without brokerage accounts. Both chose Pendle as their yield trading venue. Saturn launched mainnet on April 8th with approximately $45 million in deposits: USDat is the base layer, minted 1:1 with USDC and backed by government bonds. sUSDat is the yield layer: after staking USDat, a portion of the funds is allocated to STRC, distributing dividends to holders at an annualized rate of approximately 11%. The yield path is: BTC → MSTR equities → STRC dividends → sUSDat; Saturn attracted $5 million in TVL on its first day on Pendle. Apyx employs a different path: apyUSD aggregates STRC (11%) and SATA (12.5%) dividends, which are converted to yield through offline holding. On Pendle, TVL increased from 0 to $82.6 million in 47 days.
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