After publishing the article ENA Token Use Case Analysis_Personal Views 2024/07 yesterday, I thought of some content I want to share, so I continue to publish articles to discuss with everyone. I don’t know how much I will write in the future. For a few articles, I even wrote the content directly without drafting it. Friends, just treat it as my personal notes!
In addition, I would like to thank you for your affirmation in the message below the previous article. If you are a friend who has followed me before, you should know that since I started publishing information on Binance Square half a year ago, I have always published short investment information + brief analysis as the main axis. article, I really didn’t expect to publish a more in-depth product architecture analysis article. (It is different from the original creative intention of the original setting)
Coming to the topic, what I want to talk about today is Ethena on Pendle. I think most partners who participate in the Ethena ecosystem on $PENDLE are mainly exposed to the two products PT&YT!
As time goes by, I found that the views of the Ethena community have gradually changed. The YT product that everyone originally favored has now declined by 70% after $ENA fell from a high point. The leverage effect of sats seems to have lost its appeal.
In fact, I think there are two main factors that can be discussed:
1. The short-term returns of the first airdrop are amazing
At that time, the overall duration of the airdrop activity was short, but the ENA tokens distributed by the airdrop brought significant financial benefits to users. Such a high rate of return made users' emotions rise to an unreasonable level, and they fell into being too optimistic about YT products. The second airdrop return effect it can bring. (This has now been undermined by the long-term downward trend)
2. The inflation rate of Sats in the second period is too fast
After the actual start of the second phase of the activity, except for the great instability in the first one or two months, after entering the current Q3, the daily additional issuance of Sats points has gradually stabilized. Therefore, based on the basic information of the fixed number of tokens distributed in the second airdrop, users can already use their daily production of Sats and the production of all Sats to estimate the final number of ENA tokens that can be obtained. (This makes it easier for users to evaluate return on investment)
Summary: Based on the characteristic that the value of YT products will return to zero (value is projected to the point leverage effect), it now seems that PT with an initial APY of 70% is a more cost-effective option. (The author purchased USDe PT at 60%)
As for the ENA pool on Pendel, I won’t comment too much. It is basically a common DeFi product. The main thing to consider is whether the APY return obtained can cover the risk of currency price decline. (Of course, I believe that some partners choose to continue to hold ENA and invest in the pool on Pendle because of the multiplier effect specified in the Ethena protocol)
I didn’t expect that writing like this would exceed the word limit of the newsletter. I will use the text function to publish this article instead. It may be a little longer than the previous one. Thank you for watching it. If you want to discuss or share your opinions, please leave a message below. I think every collision of ideas may produce completely different sparks.
※The above content is purely personal sharing and not sponsored. It does not constitute investment advice. Users are advised to DYOR and evaluate their own personal risks.
※ Partners who want to participate in the Ethena Season 2 airdrop event to earn ENA by holding USDe like me can use my code:
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#Ethena #PENDLE #USDe #Airdrop