Unchained Pendle Ripped in Early 2024, But Usage Has Slowed Down. Can It Recover? - Ep. 693
Aug 23, 2024
TN Lee, founder of Pendle Finance, shares the rise and current challenges of his innovative yield trading protocol. He discusses how Pendle surged in popularity this year and the strategies behind its initial success. Lee outlines the sophisticated trading strategies users leverage and the importance of partnerships in boosting market presence. He also examines the significant drop in Total Value Locked and proposes new approaches, including the potential of Bitcoin narratives, to regain user engagement. Tune in for insights on Pendle's future!
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Pendle's Purpose
- Pendle tokenizes and trades yield, letting users speculate on or lock in APYs.
- It was created in 2020 because of the need to lock in high APYs offered by DeFi summer tokens.
How Pendle Works
- Pendle splits yield-bearing assets (e.g., stETH) into principal (PT) and yield tokens (YT).
- PT represents the deposit, while YT accrues yield; both are independently tradable.
Pendle's Growth Strategy
- Pendle's growth in 2024 was driven by identifying and aligning with key market trends.
- They focused on staking, layer-2 solutions like Arbitrum, and the rise of EigenLayer and liquid staking.