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My $gDAI Stablecoin Pool Income: 142% APY 🤯
Others: 13%🤭
Is it possible to get rich returns without short-term speculation in YT?
#YieldTrading is too complicated, how to decide when YT enters and exits?
Got a lot of questions since @pendle_fi last mentioned
This time, we will explain some things that most people want to know!
(🧵1/13)
(2/13) This building aims to teach and answer questions received
Nor is it investment advice, DYOR
First, revisit
What is Yield Trading, what is #Pendle protocol, what is YT
twitter.com/ViNc2453/status/16...
Question (1) - Underlying, Implied, Long Yield APY which one to look at?
What you actually want to ask is this one million question 💰💰💰
When does YT/PT enter and exit, when is it expensive, and when is it cheap?
(3/13)
All I see is Implied APY
Implied APY is actually the "true price" of YT
This represents what the market currently believes is the future interest-earning capacity of the asset
The lower the Implied APY, the cheaper the YT, and the more expensive the PT
Don't stare at the dollar price!
(4/13)
OK, so how low should the Implied APY be to be low enough and cheap enough?
This is to compare with Underlying APY
That's the last 7 day average, GLP or gDAI's most recent interest rate
So if Underlying is much higher than Implied APY
That is to say, "reality" is far better than "ideal (what the market believes)"
YT should be cheap, while PT should be expensive (PT is the opposite of YT)
vice versa
🤔 But...
The price given by the market is so low, is there something tricky?
That's right, Underlying APY is just the performance of interest in recent days (passed)
It does not necessarily mean that the future will be the same, but it can only give you a reference
Just like the APR of GLP fluctuates greatly,
Underlying was 50% last week, but it's back to 20% this week
So more importantly, you have to have a "Future Underlying APY" that you believe in
(6/13)
For example, GLP, look at the past chart dune.com/saulius/gmx-analytics and you will know that in the long run, the APR is about 20-30%
The history of gDAI is relatively short dune.com/queries/381873/175918... the average is around 13-15%
(7/13)
I also have to give some perspective on the future
For example, do you believe that the transaction volume of GLP perp will remain stable/optimistic in the future? 🧐
Remember, YT = bullish on future interest-bearing performance, PT = bearish on future interest-bearing performance
In my own opinion, gDAI’s YT, if the implied APY is below 9%, it’s worth considering 🤫
Don't forget that Pendle provides the computer
It can simulate your actual return on investment under different interest-earning capabilities of the underlying assets in the future!
Question (2) - Is it possible to make a lot of money without short speculation in YT?
My YT-gDAI is just holding it too! 😎
I counted the past 5 days, my YT-gDAI annualized rate of return: 142% APY! 🙀
For every 1,000 yuan I bought, I received about 20 yuan of interest in only 5 days, and these are all Stablecoin, delta neutral
It's so cool, isn't it? 🤨
(9/13)
OK Actually I should have deducted the principal because YT is worth nothing on the maturity date (although that is 1 year later)
(YT is a bit like an option, it will decrease in value over time, but it is still far from the expiration date, and the impact of impairment is very low now)
The Real Yield after deducting the principal is right, that is Long Yield APY. Currently YT-gDAI is 53%!
(10/13)
that is to say
If $gDAI maintains an average interest rate of 13.2% in the future
Then you buy YT-gDAI at the current price (implied yield = 9%)
After deducting the principal, a profit of about 53% can be realized after one year 💵💵💵
50% of stable currency income, no borrowing
fragrant 🤤
And even if the opponents of GLP and gDAI lose money, it will not affect YT's income
(11/13)
This time I came here first. The purpose of this building is to teach and answer questions received, and it is not investment advice. DYOR
(12/13)
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(13/13)
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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