With the issuance of new coins by Etherfi and its impressive performance, Pendle Finance has captured more market attention. According to Defilima data, Pendle’s Total Value Locked (TVL) has been continuously increasing since the beginning of the year, reaching $3.47 billion at the time of writing, with a monthly growth rate of 470%.
Pendle TVL reaches $3.47 billion
YT token’s white-labeled points 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 a fixed yield, which is similar to buying zero-coupon bonds. Additionally, users can speculate on the yield of specific assets by trading tokens representing 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 very efficient returns. In addition to receiving points enhanced by Etherfi, users can also earn points from Eigenlayer. Therefore, the prices of YT tokens on the platform have all shown significant growth.
However, due to its characteristics, the value of YT tends to approach zero as the expiration date approaches. Therefore, buyers of YT tokens are actually betting on the airdrop value of protocols such as EigenLayer and Ether.fi, which may outweigh the cost of purchasing YT tokens in ETH. Therefore, assuming that the airdrop situation does not meet expectations, investors still bear the risk of losses.
$PENDLE breaks $5 mark, reaching a new all-time high
Furthermore, leveraged YT can be converted into mainstream cryptocurrencies such as ETH and USDC at any time, allowing for quick exits of funds. This feature is relatively convenient for projects that require funds to be deposited to receive future airdrops in the current market conditions.
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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