Pendle is a permissionless DeFi yield-trading protocol, currently built on the Ethereum blockchain, where users can execute various yield management strategies.

Pendle allows you to sell the future yield of yield-bearing assets, essentially allowing you to bet on either the yield of the asset rising or falling, and creating strategies around the asset.

The project sounds great at a glance, as you are able to buy assets at a discount with a defined "vesting" period, however the lack of details of the on-chain metrics such as revenue and distribution to $PENDLE holders. As the fees generated from swaps of their tokens are based on time to maturity, it is nearly impossible to calculate the revenue and fee generated, and base it as a comparison with other yield-bearing projects for valuation on if it is over or undervalued.

The project has also been gaining traction on twitter the past year, and it seems like a good platform for generating extra yield on LSDs at the moment.

Pendle (PENDLE) is a cryptocurrency launched in 2021and operates on the Ethereum platform

Pendle

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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.

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