With the release of new coins by Etherfi and its impressive performance, Pendle Finance has attracted more attention in the market. According to Defilima data, Pendle’s Total Value Locked (TVL) has continuously increased since the beginning of the year and has reached $3.47 billion as of now, with a monthly growth rate of 470%.
Pendle TVL reaches $3.47 billion
YT Tokens become mainstream
It is understood that Pendle divides its assets into “Principal Tokens (PT)” and “Yield Tokens (YT)”, allowing traders to trade these two types of tokens separately. Users can purchase these assets at a price lower than the market price to earn fixed returns, similar to purchasing zero-coupon bonds. Additionally, users can speculate on the yield of specific assets by trading these tokens representing the principal and yield, similar to engaging in interest rate swap transactions.
Recently, with the issuance of new coins by Etherfi, $ETHFI has once again surpassed $8. The market has discovered that operating through Pendle’s YT (Yield Token) platform can achieve highly efficient returns. In addition to receiving points enhanced by Etherfi, users can also earn points from Eigenlayer. Therefore, the prices of YT tokens on this platform have significantly increased.
However, due to its characteristics, the value of YT tokens will approach zero as the maturity date approaches. Therefore, buyers of YT tokens are actually betting on the airdrop value of protocols such as EigenLayer and Ether.fi, which may exceed the cost of purchasing YT. Thus, if the airdrop situation is not as expected, investors still bear the risk of losses.
$PENDLE breaks $5 mark, reaching a new all-time high
Moreover, leveraged YT can be converted into mainstream cryptocurrencies such as ETH and USDC at any time, allowing for quick exit of funds. This feature is relatively convenient for projects that require funds to be deposited in order to receive future airdrops in the current market situation.
With the increasing market attention, the price of $PENDLE also broke $5 today (31st), reaching a high of $5.17, a nearly 20% increase within a week.
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