What is Pendle?
Pendle splits yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), enabling fixed-rate strategies and yield speculation.
PT Strategies (Fixed Yield)
Buy PT at a discount for guaranteed returns at maturity.
Example: Buy PT-stETH at 0.95 ETH, receive 1 stETH at maturity = ~5% fixed yield.YT Strategies (Yield Speculation)
Buy YT to capture all yield until maturity. Profitable if actual yield exceeds implied yield.
Example: YT trading at 3% implied. If stETH yields 5%, you profit on the difference.LP Strategies
Provide PT/SY liquidity to earn trading fees + PENDLE incentives.
Risk Considerations
PT: Opportunity cost if yields rise YT: Loses value if yields drop LP: Impermanent loss near maturityExplore Pendle with Fensory.