Author: defizard, crypto researcher; Translation: Golden Finance xiaozou
From "nobody" to "Binance support", and then to the achievement of trillion-dollar opportunities, let's see how PENDLE makes DeFi shine again.
Pendle in December has a bunch of Easter eggs you might have missed.
(1) PendleSwap: an aggregator among aggregators.
(2) Boros will be launched in 2025: long/short funding rate (hedging is easy).
(3) Airdrops to vePENDLE holders.
"What? Airdrop?"
Yes, my dear friend, yes. Pendle charges 3% of all accumulated YT earnings and all SY earnings (including points) of expired unredeemed PT. All of these belong to vePENDLE holders.
“How many tokens will be distributed?”
At current prices, this is about $8 million. The snapshot will be generated on December 31st.
"But... not that much. Why would anyone hold a vePENDLE?"
Pendle’s average daily trading volume is about $150 million. Last month, it distributed 408 ETH. Its new product, Boros, will be launched next year, providing margin interest rate swap transactions.
Value captured from Boros will flow to PENDLE and vePENDLE holders. No new tokens.
Imagine trading perpetual funding rates in a Boros market with daily trading volume of $150-200 billion.
“Wait a minute…Boros supports leveraged trading of trading funds interest rates??”
Yes. Traders, protocols or market makers will have the ability to hedge funding rates at scale. Fees will be distributed as follows:
- 80% goes to vePENDLE holders.
- 10% goes to the treasury.
- 10% for operations.
"I smell money...what about PENDLE? What about inflation?"
PENDLE is the core of the Pendle ecosystem and has no maximum supply cap.
Its blended inflation model sees weekly emissions cut by 1.1% each week until April 2026. Thereafter, a terminal inflation rate of 2% per year will be implemented.
“So…how is its valuation?”
At the time of writing, PENDLE's FDV (fully diluted valuation) is $1.4 billion. For comparison:
- UNI:#1swap token: FDV is $14.5 billion.
- AAVE:#1lending token: FDV is $6 billion.
- EIGEN:#1re-staking token: FDV is $6.6 billion.
- ENA: Basis deal ranked first: FDV is $16 billion.
PENDLE will become the number one in funding rate trading.
Pendle's journey began with a $3.7 million financing from Mechanism Capital in 2021. The initial TVL was not promising, and has remained below $10 million in the past two years. But the team refused to give up. They have been developing and creating.
"Pendle's current status?"
Its TVL is $4.9 billion (historical peak is $6.7 billion).
Generally speaking, Pendle benefits greatly from stablecoins: currently mainly USDe / USD0++.
TVL is followed by LRT/LST like EETH/WETH.
The bull market is in full swing, and the upside potential for Pendle is huge.
Pendle has everything you could want: innovation, unique product-market fit, adaptability, real-world usefulness, and an exceptional team and community support.
If you have identified the best bet, don't let it go easily. And PENDLE is undoubtedly one of them.
