In the cryptocurrency world, many investors are accustomed to simply holding tokens on trading platforms, hoping that the market price will rise. However, this passive way of holding coins often misses more potential profit opportunities. The Pendle protocol provides investors with a more active strategy, allowing them to obtain higher returns not only by holding tokens, but also by utilizing various mechanisms in the protocol.
What is Pendle?
Pendle is a decentralized finance (DeFi) protocol that focuses on the fixed income and interest rate swap markets. Through Pendle, users can split interest-bearing assets into two separate parts: principal tokens (PT) and interest tokens (YT). This design allows users to flexibly operate under different interest rates and market conditions to maximize returns.
Several strategies to gain more benefits using the Pendle protocol
1. Lock vePENDLE: a great profit tool for big money users! 🔒
Difficulty level:★
Suitable for users with large funds
Sources of income:
YT interest income commission (3%)
Transaction fees of the voting pool (80%)
External bribes from pool voting
APR multiplication of LP deposits (up to 2.5 times)
Features:
The yield is usually around 5%, obtained in $ETH
Single-coin strategy, no impermanent loss
How to do it:
Lock vePENDLE on the Pendle website to check the yield and lock time
2. Provide liquidity (LP): high returns, low risk! 💧
Difficulty: ★★
Sources of income:
Mining Rewards $PENDLE
Underlying asset interest
Additional LP rewards, such as $mpendle, etc. (depending on the underlying pool)
Features:
Mining Rewards
No impermanent loss if held to maturity
How to do it:
Deposit GLP, gDAI, stETH and other assets into Pendle's LP pool and enter it through the Zap function
3. Purchase Principal Tokens (PT): low risk and high return, guaranteed profit! 💵
Difficulty level:★
Sources of income:
Fixed interest income
Features:
low risk
Fixed income, suitable for long-term investors
How to do it:
Buy discounted PT on Pendle and hold it until expiration to exchange it for the underlying native asset at a 1:1 ratio
4. Buy and hold interest tokens (YT): the secret weapon for high yields! 📈
Difficulty level: ★★★★
Sources of income:
Floating interest income of the underlying assets
Points income of some lrt assets
Features:
High risk, YT value becomes zero on expiration date
High leverage effect and high capital efficiency
How to do it:
Buy YT on Pendle and hold it to earn interest
5. Short-term speculation on YT: The opportunity for huge profits is right in front of you! 📊
Difficulty level: ★★★★★
Sources of income:
Profit by buying high and selling low
Features:
High risk, requires strong judgment on market trends
How to do it:
Take advantage of YT price fluctuations to gain profits through short-term operations
in conclusion
The Pendle protocol provides users with a variety of opportunities to obtain higher returns on the chain. Compared with simply holding Pendle tokens, using these strategies can more effectively realize asset appreciation. Whether it is to obtain stable returns by locking vePENDLE or to obtain higher returns by providing liquidity and purchasing PT and YT, investors can find an investment method that suits them on the Pendle platform.
If you want to change from a simple coin holder to a more active income earner, you might as well try these Pendle strategies to take full advantage of DeFi and achieve greater wealth growth. Visit the Pendle platform now and start your high-yield journey!
