The total value of cryptocurrencies held Pendle PENDLE
-8.72%
has reached $4 billion, as the yield trading platform continues to attract attention.
Pendle’s main idea is to divide yield-generating assets into underlying and yield assets, both of which can be traded separately. This concept seems to have gained popularity, since exchanges on the platform have reached $10 billion, according to those responsible for the project. analytics dashboard – with trading volume exceeding $400 million in a single day on April 2.
Pendle has benefited significantly from the current ether re-easing boom, as most trading is focused around liquid re-easing tokens tied to ether and the corresponding yield.
Capital inflows from these liquidity restocking platforms have increased the value held on Pendle. WeETH holdings of the Yield Platform – the eETH-wrapped version of liquid discount platform EtherFi – increased by 13% over the past week, according to Dune Analytics. data grouped by Henrystats. Pendle now holds 263,442 weETH ($920 million). Similar surges come from Renzo, another fluid replenishment protocol.
The exchange of tokens linked to the Ethena synthetic dollar protocol has also been significant, as it has attracted a lot of attention alongside its own growth and token launch. Yield pools for its recently introduced USDe stablecoin on Pendle contributed over $500 million in TVL.
“We have benefited greatly from the recent surge in interest in asset buyback and Ethena. Looking forward, our priority is to continue to deliver features and products that meet the needs of our users,” said the CEO of Pendle, who goes by the name TN.
The majority of trading on Pendle takes place on Ethereum, but the project is gaining traction on Ethereum Layer 2 networks like Arbitrum and Mantle.
Pendle enables leveraged point trading
Pendle also allows users to redeem their points. Points are where projects award loyalty points to users for activities such as trading volume, which can then be turned into tokens if an airdrop needs to take place. However, such airdrops are guaranteed and the potential value that can be derived from these points is uncertain.
In response to this, Pendle products allow users to hedge or leverage their points up to 128 times. Redeeming points represents approximately 10% of the total value locked on the platform.
“Pendle farming strategies launched this year have generated massive growth as they allow airdrop farmers to take advantage of purchasing yield tokens that accumulate points for a fraction of the cost of the underlying principal, often with additional bonus multipliers) for a significant boost to protocols like EtherFi and Renzo,” noted George Calle, head of research at The Block.
With the rapid growth of Pendle, the price of Pendle token has increased steadily this year. The token started this year just above $1, according to The Block’s Price page, and recently topped $5.
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