Collaborate with Pendle
Context
Pendle is excited to work with developers and dApps to build out the future on-chain yield trading ecosystem. We are keen to hear your ideas, collaborate and provide necessary support to bring your project to life.
What is Pendle
The Pendle protocol is a decentralised yield trading platform. Pendle allows anyone to purchase assets at a discount, obtain fixed yield, or long DeFi yield. The protocol enables this by taking yield-bearing tokens and then splitting them into their principal and yield components, PT (principal token) and YT (yield token) respectively, which allows them to be traded via Pendle’s AMM.
Pendle brings the TradFi interest derivative market into DeFi. In traditional finance, interest rate swaps are the biggest market in the world at >$500T. PT is the equivalent of zero-coupon bonds while YT is the equivalent of coupon payments. Pendle is positioning itself to become a core infrastructure for on-chain yield trading.
Read more on Pendle here.
Success Cases
Pendle has worked with various dApps in the past. A few examples are:
- Liquid Lockers. vePENDLE locking mechanism was introduced as part of Pendle’s v2 launch. With this implementation, vePENDLE holders benefit from boosted LP APYs, $PENDLE incentive gauges voting and also earn additional swap fees from voted pools. Pendle worked closely with 3 different liquid lockers namely Penpie, Equilibria and StakeDAO to consolidate vePENDLE holdings. Collectively, these 3 liquid lockers have 440M TVL, contributing to ~30% of Pendle’s overall liquidity.
- Money Markets. Due to its mechanics, the value of Pendle’s Principal Tokens (PT) is tightly correlated with the value of its underlying asset, making it an ideal asset class as collateral. Pendle’s PTs are accepted in various money markets such as Silo, Stella, Seneca, Dolomite and Timeswap. In total, more than $6M of Pendle’s assets are currently deployed as collateral across various money markets.
Areas of Interests
Few areas that we’re keen to explore:
- Money Markets & Leverage Strategies. PTs are excellent collateral to borrow more funds while still earning PT’s fixed rate return. There’s sizable PT liquidity on Pendle that remains untapped. An example is PT-eETH on Ethereum, in which there’s 100,000 ETH ($300M) worth of floating PT-eETH held by Pendle users. Leverage strategies involving LP tokens also has proven demand within our community as seen by Stella’s hyperpools.
- Vaults, Zappers & Autocompounders: Yield strategies that optimise returns by utilising Pendle’s tokens (YT, PT or LPs).
- Index Funds, Structured Products & Derivatives: Inclusion of Pendle’s assets into other Defi products that delivers on-chain yield exposure to different target audiences that have different financial goals and risk appetite.
- Collateralized Debt Positions (CDPs): PTs are excellent collaterals that could be used to mint stablecoins to unlock more liquidity while still earning PT’s fixed rate return. LPs are also good yield generating collateral for the same purpose.
Interested?
Join our developer community on Discord for support and connect with fellow builders!
Alternatively, feel free to reach out to the following accounts:
Telegram: @gentyana; @WayneBruce0x
Twitter: @gentpendle; @WayneBruce0x
Email: gentyana@pendle.finance; waynebruce@pendle.finance
