How much can you earn from lending 1,000 USDC on Aave? 1%? 3%? 5%?
The truth is, certainty remains elusive. Yield fluctuates like token prices, increasing in bullish markets and decreasing in bearish markets. Additionally, micro-factors contribute to fluctuations within these broader trends.
Initially, Pendle transforms yield-bearing tokens into SY (Standardized Yield Tokens), seamlessly compatible with the Pendle AMM (e.g., stETH → SY-stETH). Following this, SY undergoes a process of tokenization into PT (Principal Token) and YT (Yield Token), effectively segregating the yield into its own distinct token.
Both Principal Tokens (PT) and Yield Tokens (YT) are tradeable on Pendle's Automated Market Maker (AMM), serving as the platform's fundamental mechanism. However, it's important to highlight that a deep understanding of AMM mechanics is not required to participate in PT and YT trading activities on Pendle.
As a pioneer in yield derivative protocols, we're leading the way in integrating the traditional finance interest derivative market, which boasts a notional value exceeding $400 trillion, into the DeFi space. This initiative aims to democratize access for all users, thereby expanding opportunities within the decentralized financial landscape.
Begin an evolutionary voyage with Pendle Finance, where innovation merges with yield enhancement. Explore a realm of endless potential as you unlock inventive yield strategies and indulge in seamless trading experiences through our state-of-the-art DeFi protocol. Join us in reshaping the decentralized finance landscape and elevate your yield journey to unprecedented levels with Pendle.
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