What is Pendle Finance (PENDLE)? Pendle Finance Cryptocurrency Overview

What is Pendle Finance? Pendle Finance is a Yield Derivatives platform that allows users to use future profits as Collateral asset, trading,... Pendle Finance itself also receives the support of many well-known investment funds in the world. crypto market. So what is so attractive about Pendle Finance, everyone, let's find out in this article.

What is Pendle Finance?

Pendle Finance Overview

Pendle introduces a new concept, a new niche in DeFi that is DeFi Yield - Trading Protocol, where users can create strategies to profit from their own profits in the future.

How Pendle Finance works

Pendle Finance has a relatively simple operating mechanism as follows:

• Step 1 : Pendle Finance will wrap Yield - Bearing Tokens in the form of SY (Standard for issuing future Profitable Tokens).
• Step 2 : SY will be divided into 2 types: PT (Principal Token - Root Token) and YT (Yield Token - Profit Token).
• Step 3 : PT & YT are traded through custom Pendle AMM .

For example: You have 100 DAI you need to lock into the Lending Compound platform within 3 months with a profit of 1 DAI + 0.5 COMP

Instead of putting your assets into Compound, you can put your assets into Pendle for Pendle to send to Compound. When you put your 100 DAI into Compound, you will get 100 PT cDAI and 100 YT cDAI.

As I explained above, 100 PT cDAI represents 100 DAI of the original asset. By holding 100 PT cDAI you can claim your 100 DAI again after 3 months period. 100 YT cDAI represents future profit 1 DAI + 0.5 COMP. By holding 100 YT cDAI you can claim profit anytime in real time.

The most basic and simplest way when you hold YT, PT or both is as follows:

• Use 1 original asset to mint both PT and YT
• Use PT and YT at a ratio of 1 - 1 to redeem the original asset.
• Holding YT allows you to claim your reward anytime you want.
• Holding PT can help you get your original assets back at maturity.

Besides, Pendle Finance allows users to access many strategies to generate profits from future profits including:

• Fixing Your Yield : Based on the supply and demand of PT, you can buy assets at a discount and receive the full asset on the maturity date.
• Leverage Yield Farming : Use leverage to generate more profit as 3AC did with Lido Finance & stETH.
• Yield Trading : Your future profits can be traded, traded or continued to compound for more profits.

Development Roadmap

Update...

Core Team

The project was built and developed by many people from Vietnam such as Nghia Pham, Thuc L., Daryl Tan, Kevin Tseng, Long Vuong Hoang,...

Investor

April 16, 2021: Pendle Finance successfully raised $3.7M in a Private round led by Mechanism Vapital with the participation of Crypto.com, Spartan Group, Haskey Capital, LedgerPrime, Sora Ventures,... Besides, there are some Angel Investors such as Hongbo - CEO & Co Founder of Debank, Taiyang Zhang - CEO & Co Founder of Ren Protocol,...

Tokenomics

Overview of Pendle Finance project tokens

• Project name: Pendle Finance
• Token: Pendle
• Blockchain: Ethereum
• Token classification: ERC 20
• Smart Contract: 0x808507121b80c02388fad14726482e061b8da827
• Total supply: 235,890.444

Token Allocation

• Ecosystem Fund: 19.2%
• Core Team: 5.7%
• Circulating: 65.1%
• Incentives: 10%

Token Release

In October 2022, PENDLE's inflation rate is about 2% per year and also from October 2022, the inflation rate will be reduced by 1.1% every week until April 2026.

Pendle Finance also accepts suggestions in gorvernance to have initiatives to upgrade or change the tokenomics model more and more effectively.

Token Use Case

Pendle Finance uses a veTokens model similar to many DeFi platforms today. Pendle's veToken model has some of the following characteristics:

• vePENDLE will be locked for a maximum of 2 years the value of vePENDLE will gradually decrease within 2 years.
• All protocol revenue will be shared with vePENDLE.
• vePENDLE has voting rights to direct incentives to different pools from which to earn more profits.
• If you are 1 LP and you hold vePENDLE then you will get more rewards.

Pendle Finance's Information Channel

• Website: https://www.pendle.finance/
• Blog: https://medium.com/pendle
• Twitter: https://twitter.com/pendle_fi
• Discord: https://discord.com/invite/9x9VUngNZD

Summary

Pendle Finance is a Yield Derivatives platform that opens up a whole new niche in DeFi giving users many opportunities to optimize their profits. If Pendle's team continues to release more strategies, then Pendle Finance will surely develop even more in the next time.