PENDLE Token – Pendle Expands DeFi Offerings: New Pools Offer 10% Fixed and 45% Floating Yields
PENDLE Token – On Wednesday, the DeFi platform Pendle unveiled new pools that offer floating yields up to 45% and fixed yields of 10% on a Bitcoin (BTC)-backed token. This move represents a significant expansion of Pendle’s product offerings and introduces innovative yield strategies for users.
Collaboration with Lombard and Corn
The new yields are achieved through a partnership with Lombard, which provides the LBTC token—a liquid-staking token—and the Ethereum layer-2 network Corn. Users deposit LBTC into Pendle’s pools, which are structured by Corn. Since its launch, the pool has attracted over $13 million in user deposits and is set to mature on December 26.
Pendle’s Yield Structure and Market Impact
Pendle’s unique approach involves splitting investments into two components: principal tokens (PT) and yield tokens (YT). This separation allows users to trade future returns and engage in high-yield strategies. The YT, which users can purchase with LBTC, provides increased exposure to future yields and associated points until the pool’s maturity, at which point the YT’s value will be zero.
CEO’s Vision and Future Plans
Pendle CEO TN Lee highlighted the success of fixed yield models for Ethereum and expressed optimism about replicating this success with Bitcoin. “We’re aiming to mirror the success we’ve seen with ETH, and it’s going to be a busy few weeks as we roll out new pools and launches,” Lee stated in a Telegram message to CoinDesk.
Understanding Pendle’s Mechanism
Pendle’s mechanism divides DeFi investments into principal and yield tokens. Principal tokens represent the initial investment, while yield tokens represent the expected earnings. This innovative approach allows for substantial yields and flexibility in the DeFi space. Liquid staking enables users to stake their assets and receive a new token in return, while layer-2 solutions enhance blockchain scalability. DeFi protocols like Pendle use automated smart contracts to facilitate financial services such as lending and borrowing.
Sui and AI Token Movements
The PENDLE token has seen an 11% rise over the past 24 hours, outperforming Bitcoin’s 2% increase. This growth reflects the market’s positive response to Pendle’s new offerings and the broader appeal of its high-yield strategies.
FAQ
What is Pendle’s new DeFi offering?
Pendle has launched new DeFi pools that allow users to earn up to 45% floating yields and 10% fixed yields on a bitcoin-backed token. These pools are facilitated through a partnership with the liquid-staking service Lombard and the Ethereum layer-2 network Corn.
What is the significance of the partnership with Corn?
The partnership with Corn, an Ethereum layer-2 network, supports the infrastructure for Pendle’s DeFi pools. Corn’s network enables efficient staking and yield generation, enhancing the overall performance and attractiveness of Pendle’s pools.
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