Pendle’s Revolutionary New Pools: Unlocking Floating Yields Up to 45% and Fixed Yields of 10%
In a groundbreaking move, DeFi platform Pendle has introduced new pools that allow users to earn floating yields up to 45% and fixed yields of 10% on a bitcoin-based token. This innovative offering is made possible through a collaboration with Lombard’s staking service LBTC and the Ethereum layer-2 network Corn.
A Game-Changing Partnership
Pendle’s new pools have been designed to provide users with unparalleled flexibility and yield-generating opportunities. By depositing LBTC, a liquid-staking token issued by Lombard, into a Pendle pool created by Corn, users can take advantage of variable yields up to 45% or fixed annualized yields of 10%. This innovative approach has already attracted significant attention, with over $13 million in user deposits since the pools went live.
How it Works
Pendle’s unique approach to DeFi investing involves splitting investments into two separate components: principal tokens (PTs) and yield tokens (YTs). This allows users to trade future returns separately from their initial investment, facilitating high-yield strategies that were previously unattainable. By buying YT with LBTC, users can increase their exposure to the underlying yield and points from LBTC and Corn until maturity.
The Benefits of Pendle’s Approach
Pendle’s innovative approach to DeFi investing offers several key benefits for users:
- Increased flexibility: By separating principal tokens (PTs) and yield tokens (YTs), users can trade future returns separately from their initial investment, allowing for more dynamic and flexible strategies.
- Higher yields: Pendle’s pools offer variable yields up to 45% or fixed annualized yields of 10%, providing users with unparalleled opportunities to earn interest on their investments.
- Decentralized finance (DeFi): By using a decentralized platform, users can participate in high-yield strategies without relying on traditional financial institutions.
Pendle’s Future Plans
In an interview with CoinDesk, CEO TN Lee expressed the company’s ambitions to replicate the success of fixed-yield pools for ETH by expanding the offering to BTC. Lee stated that the next few weeks will be "busy" as Pendle rolls out new pools and launches.
The Role of LBTC and Corn
Lombard’s staking service, LBTC, plays a crucial role in Pendle’s new pools. By converting wrapped bitcoin (WBTC) to a Lombard Bitcoin (LBTC) token, users can capture yield in DeFi applications. Corn, another startup, uses bitcoin as the main token to pay usage fees.
Unwrapping the Jargon
For those unfamiliar with DeFi terminology, here’s a brief primer:
- Liquid staking: A service that allows users to stake their crypto assets and receive a new token in exchange.
- Layer 2s: Blockchains focusing on a specific use case atop a broader service blockchain.
- DeFi: Using automated smart contracts to provide financial services, such as lending and borrowing to users.
- Pool: A digital locker to store assets and earn returns, similar to bank accounts.
Pendle’s Token Performance
In response to the introduction of Pendle’s new pools, the platform’s PENDLE tokens have seen a significant surge in value, rising 11% in the past 24 hours. This beats the 2% rise in bitcoin, according to CoinGecko data.
Conclusion
Pendle’s innovative new pools offer users unparalleled opportunities to earn high yields on their investments. By leveraging the power of decentralized finance (DeFi) and collaborating with industry leaders like Lombard and Corn, Pendle is pushing the boundaries of what is possible in the world of cryptocurrency investing. As the platform continues to grow and expand its offerings, it will be exciting to see how users adapt and benefit from these new opportunities.
What’s Next for Pendle?
As Pendle continues to roll out new pools and launches, users can expect even more innovative solutions to emerge. With its focus on decentralized finance (DeFi) and collaboration with industry leaders, Pendle is poised to remain a major player in the world of cryptocurrency investing.