What is Pendle?
Pendle is a decentralized finance trading protocol that focuses on yield trading. It has its own unique Automated Market Marker (AMM), and it is built on the Ethereum and Avalanche blockchains.
The platform aims to give more control back to the owners of yield-bearing assets. They achieve this through the splitting of yield-bearing assets into yield components and the tokenized ownership of these assets. This process offers the opportunity to perform limitless yield trading transactions, improves versatility, and increases the profit-making potentials of these assets.
On the platform, traders are given direct exposure to opportunities to generate additional yields, lock in future yield upfront, and future yield streams. All these are made possible without the need for collateral.
While working to integrate more yield protocols in the future, Pendle supports Aave, Compound, Sushi, TraderJoe, and Benqi.
To get started on the platform, you first have to deposit yield-generating assets into the platform. After this is done, you can then mint Ownership Tokens (OT) and Yield Tokens (YT). The ownership tokens represent your ownership of the tokens, while the yield tokens represent your entitlement to the yield generated by the assets. Trading occurs when users swap tokens on the AMM, or by trading ownership tokens on the protocols that support Pendle. Besides, the platform allows Pendle users to earn swap fees and other incentives by depositing ownership and yield tokens in liquidity pools.
PENDLE token is the native utility token of the Pendle ecosystem. You can see the PENDLE price on the live Pendle price chart featured above.
Use Cases of PENDLE Tokens
PENDLE coin exists only as a utility token. Though, there are plans to include governance functions to it in the future.
PENDLE tokens are mainly used to pay yield interest, swap fees, and other incentives. Additionally, forge and swap fees are paid in PENDLE tokens as well. Forge fees are fees paid during the minting processes of yield and ownership tokens, while swap fees are charges paid during trading transactions on the AMM.
Besides, PENDLE token holders can stake their tokens for rewards. If you fancy being a part of the Pendle ecosystem, you can check the aforementioned Pendle price chart above for the latest PENDLE price.
Who Founded Pendle?
Pendle was founded by TN Lee in late 2020. Little is known about TN Lee, however, he is reputed to be a successful entrepreneur in the crypto and blockchain space. The team behind the protocol is also made up of other professionals and experienced minds in cryptocurrency, blockchain technology, and business.
PENDLE Tokenomics
The maximum supply of PENDLE tokens is 251 million. The team has been allocated 22% of the tokens, while the ecosystem has 18% reserved for it. 37% was set aside for liquidity incentives. The remaining tokens were shared between investors, advisors, and liquidity bootstrapping at 15%, 1%, and 7% respectively.
All team members and investors are under strict vesting and release schedules. This is done to maintain the Pendle price stability.
