Pendle is a decentralized yield-trading protocol that allows users to generate profits from staking and trading derivatives. The project operates with three main components: Yield Tokenization, Pendle AMM, vePENDLE.
Here's an example of how Pendle works: ETH → stETH → SY-stETH → PT-stETH + YT-stETH.
Pendle Finance has recently gained attention as a leading name in the LSDfi trend due to its promising market-making mechanisms using specialized tokens.
However, the project's scale is still relatively small in the market, ranking fifth among yield dApps. Additionally, Binance Research notes that the LSDfi market represents only a small portion of the entire DeFi market. Moreover, Pendle has not undergone major fundraising rounds, having raised only a total of 3.7 million USD.
As per the project's vesting schedule, there will be no remaining token unlocks for the Team, Investors, or any other parties until 2027. Therefore, it is necessary to closely monitor the project's on-chain activities to identify suitable investment opportunities. Show Less
