Pendle Finance is a decentralized platform revolutionizing crypto yield trading by tokenizing future yields and offering strategies for optimized and reliable earnings within the DeFi ecosystem. Pendle Finance was developed to address limitations in crypto yield trading. It solves the yield volatility issue by tokenizing future yields and providing strategies for consistent and optimized earnings in the decentralized finance (DeFi) landscape.

In this article, we will discuss Pendle Finance, explaining how it works, clarifying what vePENDLE is, and also covering Pendle Earn and Pendle Trade modes. We will also dive into the native token of Pendle Finance - "PENDLE," its tokenomics, the history of Pendle Finance, its features, and the value of the PENDLE token. Lastly, we will offer succinct guidance on acquiring PENDLE tokens.

What is Pendle Finance?

Crypto yield trading refers to the practice of generating income by lending cryptocurrency assets. The amount of yield earned from lending a specific amount of cryptocurrency, such as 500 USDC on Aave, is subject to fluctuations similar to token prices. The yield tends to rise during bullish market conditions and decline in bearish market conditions. The overall market trends are influenced by several micro-factors, which cause additional fluctuations and uncertainty when attempting to predict the exact yield percentage.

However, Pendle Finance has emerged as a solution to address these limitations in crypto yield trading. With Pendle, users have the opportunity to optimize their yield earnings consistently. During bullish markets, they can increase their exposure to yield to maximize their profits. Conversely, in bearish markets, Pendle allows users to hedge against potential downturns in yield, thereby mitigating risk and stabilizing their earnings. By employing this innovative approach, Pendle aims to provide a more reliable and predictable yield trading experience for its users.

Pendle Finance is a decentralized finance (DeFi) protocol that operates as a yield-trading platform, enabling users to tokenize and trade future yields of assets like ETH. The protocol utilizes a two-token system consisting of $PENDLE, the governance and liquidity token, and $YT, representing the future yield of an asset. When users sell their future yield, they receive $YT tokens in return, which can be traded on the Pendle Finance platform.

Pendle allows users to take control of their yield through various yield-management strategies. The process begins with yield tokenization, where yield-bearing tokens are wrapped into standardized yield tokens (SY), which are then split into principal tokens (PT) and yield tokens (YT). This enables the yield to be tokenized separately from the principal amount.

The core engine of Pendle is its Automated Market Maker (AMM), where users can trade PT and YT without the need for a deep understanding of AMM mechanics. Pendle Finance empowers users to execute advanced yield strategies, including fixed yield, long yield, and earning more yield without additional risks by providing liquidity. By offering these features, Pendle opens up new opportunities for users to optimize their yield strategies within the DeFi ecosystem.

What is vePENDLE?

vePENDLE also known as Vote-escrowed PENDLE serves as Pendle's governance system, allowing users to participate in the platform's decision-making processes. When utilizing vePENDLE, users are required to lock their PENDLE tokens. The longer they lock their tokens, the higher their vePENDLE value becomes. However, over time, the value of vePENDLE diminishes, but this reduction can be counteracted by extending the lock duration.

With vePENDLE, users can actively contribute to the distribution of PENDLE incentives. By voting for their preferred liquidity pool, they can incentivize liquidity provision. The voting power is directly proportional to the amount of vePENDLE held, granting greater influence to those with higher vePENDLE values. Voting for a pool entitles users to receive 80% of the swap fees collected by that particular pool, and the expected annual percentage yield (APY) is displayed as "Voter APY" before casting the vote.

vePENDLE holders can also benefit from a share of the protocol's revenue generated through swap fees and yield token (YT) fees. This ensures that vePENDLE holders are not only active participants in governance but also entitled to a portion of the platform's income streams.

Pendle Earn and Pendle Trade Modes

Pendle Earn and Pendle Trade are two modes of operation within the platform. Pendle Earn focuses on the most commonly used functions, such as fixed yield and liquidity provision, aiming to enhance user experience for the majority of users. On the other hand, Pendle Trade provides a full suite of functions, enabling users to trade yield by buying and selling PT and YT tokens. Users can easily switch between Pendle Earn and Pendle Trade using the toggle feature in the application, depending on their specific yield-trading preferences and needs.

What is the PENDLE Token?

PENDLE serves as the native token for the Pendle Finance protocol, serving a vital role in both governance and liquidity provision. Token holders can utilize PENDLE to vote on proposals which would impact the protocol's development and maintenance, empowering them with a voice in decision-making processes. PENDLE tokens can be also used to provide liquidity to the Pendle Finance market, ensuring sufficient liquidity for users to buy and sell $YT tokens. PENDLE tokens can be staked, offering the opportunity to earn rewards, and allowing users to generate passive income while supporting the Pendle Finance ecosystem.

In summary, PENDLE holds intrinsic utility, being an instrumental governance and liquidity provision tool for the Pendle Finance protocol. Its flexibility allows users to vote on proposals, ensuring liquidity in the market, and earning rewards through staking. With a transparent tokenomics structure and compatibility with the Ethereum blockchain, PENDLE presents a compelling option for users seeking opportunities in crypto yield trading.

PENDLE Tokenomics

History of Pendle Finance

Pendle Finance was founded by a collective of unidentified developers who adopted the aliases TN Lee, GT, YK, and Vu. Pendle Finance was officially introduced in June 2021 and secured $3.7 million in funding from notable investors like Bitscale Capital, Crypto.com Capital, and other supporters.

Central to Pendle Finance's offerings is an innovative automated market maker (AMM) that accommodates assets subject to time decay. This innovative approach empowers users to engage in the exchange of future yield tokens, representing entitlement to a portion of an asset's yield over a predefined time frame. Such functionality facilitates efficient yield exposure management and exploitation of prevailing market circumstances.

The headquarters of Pendle Finance is located in South Korea, where a team of 10+ proficient developers is dedicated to devising ingenious DeFi solutions that simplify yield administration. Although relatively new, Pendle Finance has made notable strides, with an experienced development team, a pioneering product, and an active user community. These factors position it favorably for a substantial role in shaping the future of crypto yield trading.

Among Pendle Finance's contenders are Alchemix, Yearn Finance, Harvest Finance, among others, which offer similar products and services. Pendle Finance, however, distinguishes itself by its emphasis on tokenized yield. Their unique vision could potentially grant Pendle Finance a competitive edge as the demand for more adaptable yield management solutions continues to rise.

Features of Pendle Finance

Yield Tokenization: Pendle Finance introduces a unique yield tokenization mechanism, enabling users to bifurcate yield-bearing assets into distinct tokens: a principal token representing the asset itself and a yield token denoting the entitlement to a portion of the asset's yield across a defined timeframe. This innovative approach simplifies yield exposure management and facilitates capitalizing on prevailing market dynamics.
Automated Market Maker (AMM): At the heart of Pendle Finance lies an advanced automated market maker (AMM) system. This AMM ensures seamless buying and selling of yield tokens, characterized by efficiency and liquidity, thereby facilitating fair and accessible yield token trading.
Decentralized Governance: Upholding its decentralized ethos, Pendle Finance operates under the governance of its user community. Stakeholders can actively engage in governance by staking PENDLE tokens, thus gaining the privilege to influence protocol evolution through voting on pivotal proposals.
Hedger Program: A distinctive feature of Pendle Finance is its inclusive hedger program, catering to users seeking to hedge their yield exposure. Within this framework, hedgers assume the responsibility of providing yield to other users in exchange for a fee, effectively mitigating risk and safeguarding yield against market fluctuations.
Enhanced Flexibility: Pendle Finance grants users heightened flexibility in managing their yield exposure. Users possess the freedom to opt for the principal token, the yield token, or a customized combination of both, aligning their yield strategy with individual preferences.

In summary, Pendle Finance emerges as a promising DeFi protocol, boasting a range of distinctive features designed to streamline yield management. While the project remains in development, its potential to substantially shape the future of DeFi is undeniable.

What Is PENDLE Token Value?

The value of PENDLE tokens is determined by the interaction between supply and demand factors. As of August 8th, 2023, PENDLE tokens are currently valued at $0.71. This value is influenced by various elements, including:

The demand for services provided by Pendle Finance.
Being an ERC-20 token, the value of Pendle tokens is linked to Ethereum's performance in the wider cryptocurrency market.
The overall health of the DeFi industry.
Anticipated demand for Pendle Finance is expected to increase as more users become aware of the benefits of tokenized yield.

Overall, the valuation of PENDLE tokens is uncertain and can experience fluctuations. Although the project has a robust team and promising product, which could lead to potential appreciation in PENDLE token value over time, thorough research is essential before investing in any cryptocurrency, including PENDLE tokens.

How and Where to Buy PENDLE Tokens?

CoinEx is a global cryptocurrency exchange, trusted by 6+ millions of users worldwide with 100% reserve. With its 1000+ tokens supported, including PENDLE tokens, users can now trade easily and seamlessly. To purchase PENDLE tokens on CoinEx, follow the steps below.

Create an Account: Start by signing up for a CoinEx account.
Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
Navigate to PENDLE Trading Page: Once your account is funded, go to the dedicated PENDLE trading page on CoinEx. You can find a search box and enter the term PENDLE to swiftly locate the trading pair associated with PENDLE tokens.
Choose a Trading Pair: Select the trading pair PENDLE/USDT to trade PENDLE against USDT (Tether).
Specify the Purchase Amount: Determine the quantity of PENDLE tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order.

By following these comprehensive steps, you can easily trade PENDLE on CoinEx, taking advantage of the available trading pairs.