Pendle is an innovative financial protocol in cryptocurrency that allows users to tokenise and trade future yield on Ethereum and Avalanche. Holders of yield-bearing assets can lock in future yields in advance, converting their expected earnings into liquid assets today.
Pendle operates through a unique mechanism involving separating ownership of an underlying yield-bearing asset from its future yield. It enables users to sell the rights to future yields before these yields are realised. Here’s how it works:
This dual-token system allows users to manage their investment and risk by either retaining the yield tokens, betting on future returns, or selling them to secure immediate liquidity.
The PENDLE token is the native utility token of the Pendle protocol. It plays a crucial role in governance, allowing token holders to vote on key decisions, such as protocol upgrades and parameter settings. Moreover, PENDLE is used to incentivise various activities within the ecosystem, promoting user engagement and protocol growth.
The PENDLE token's economics are designed to align the interests of the protocol's users, developers, and stakeholders. Here are crucial elements of its tokenomics:
The main use cases of Pendle are centred around yield management and risk mitigation:
Pendle introduces a novel concept in decentralised finance (DeFi), providing a marketplace for trading future yields. This adds a layer of flexibility in managing yield income and broadens the scope of strategic investment in the DeFi sector. By offering innovative tools for yield management and trading, Pendle stands out as a pioneering protocol that enhances the functionality and accessibility of financial services in the blockchain space.
PENDLE token holders can now effortlessly buy, sell, and exchange PENDLE with 16 fiat currencies , including widely used ones such as EUR, CHF, and GBP, directly within the SwissBorg app. SwissBorg's commitment to simplifying the crypto-finance landscape makes managing both cryptocurrencies more straightforward and accessible than ever before, enhancing the overall user experience for PENDLE token holders.