Author: defizard, crypto researcher; Translator: Jinse Finance Xiaozou
From 'nobody' to 'Binance supported', to achieving a trillion-dollar opportunity, let's see how PENDLE revitalizes DeFi.
Pendle has many Easter eggs in December that you might have missed.
(1) PendleSwap: An aggregator of aggregators.
(2) Boros will launch in 2025: Long/short funding rates (hedging made easy).
(3) Airdrop to vePENDLE holders.
What? Airdrop?
Yes, my dear friend. Pendle charges a 3% fee on all accumulated earnings from YT and all SY earnings (including points) from unredeemed PT at maturity. All of this goes to vePENDLE holders.
How many tokens will be distributed?
Approximately $8 million at the current price. The snapshot will be generated on December 31.
But... not that much. Why would anyone hold vePENDLE?
Pendle's daily trading volume is approximately $150 million. 408 ETH was distributed last month. Its new product Boros will launch next year, offering margin rate swap trading.
The value obtained from Boros will flow to PENDLE and vePENDLE holders. No new tokens.
Imagine trading perpetual funding rates in a Boros market with a daily trading volume of $150 billion to $200 billion.
Wait... does Boros support leveraged trading of funding rates??
Yes. Traders, protocols, or market makers will have the ability to hedge funding rates on a large scale. The fees will be distributed as follows:
- 80% goes to vePENDLE holders.
- 10% goes to the treasury.
- 10% for operations.
I smell money... so what about PENDLE? What’s the inflation situation?
PENDLE is the core of the Pendle ecosystem, with no maximum supply cap.
Its mixed inflation model reduces weekly emissions by 1.1% per week until April 2026. After that, a terminal inflation rate of 2% per year will be implemented.
So... how's the valuation?
At the time of writing, PENDLE's FDV (Fully Diluted Valuation) is $1.4 billion. Compare with the following data:
- UNI: The top-ranked swap token: FDV is $14.5 billion.
- AAVE: The top-ranked lending token: FDV is $6 billion.
- EIGEN: The top-ranked re-staking token: FDV is $6.6 billion.
- ENA: The top-ranked Basis trade: FDV is $16 billion.
PENDLE will become the top choice for funding rate trading.
Pendle's journey began with a $3.7 million funding from Mechanism Capital in 2021. The initial TVL was not promising, staying below $10 million for the past two years. But the team refused to give up. They have been consistently developing and creating.
What is Pendle's current status?
Its TVL is $4.9 billion (historical peak of $6.7 billion).
Generally, Pendle benefits significantly from stablecoins: currently mainly USDe / USD0++.
TVL is closely followed by LRT / LST, such as EETH / WETH.
The bull market is in full swing, and Pendle has huge upside potential.
Pendle has everything you want: innovation, unique product-market fit, adaptability, real-world utility, an excellent team, and community support.
If you have identified the best bet, don’t let it slip away easily. And PENDLE is definitely one of them.
