According to CoinDesk, decentralized finance (DeFi) platform Pendle has launched new pools offering variable yields of up to 45% and fixed yields of 10% on a bitcoin-backed token. This initiative aims to enhance the platform's product offerings and attract more users.
The new pools allow users to deposit LBTC, a liquid-staking token issued by restaking startup Lombard, into a Pendle pool created by Ethereum layer-2 network Corn. Since its launch, the pool has garnered over $13 million in user deposits and is set to mature on December 26. Pendle's CEO, TN Lee, expressed optimism about replicating the success seen with fixed yields for Ethereum with Bitcoin.
Pendle's strategy involves splitting investments into principal tokens and yield tokens, which can be traded separately. This approach facilitates high-yield strategies by enabling users to trade future returns. Users can buy yield tokens with LBTC, increasing their exposure to the underlying yield and points from LBTC and Corn until maturity. At maturity, the yield tokens will be worth zero, but users can choose to receive either the fixed yield or the floating yield, which includes points that can be monetized and future tokens airdropped to LBTC holders.
Lombard's restaking service converts wrapped bitcoin (WBTC) to Lombard Bitcoin (LBTC) tokens, which can be used in DeFi applications to capture yield. Corn, another startup, uses bitcoin as the main token to pay usage fees. Liquid staking allows users to stake their crypto assets and receive a new token in exchange, while layer-2 blockchains focus on specific use cases atop a broader service blockchain. DeFi utilizes automated smart contracts to provide financial services like lending and borrowing. Pools in DeFi can be likened to digital lockers where assets are stored to earn returns.
Pendle's PENDLE tokens have seen an 11% increase in the past 24 hours, outperforming bitcoin's 2% rise, according to CoinGecko data.
