Looking back at Pendle Finance's 3-year development journey
Pendle Finance is a potential project that has had a growth of more than 200% in 2023. So how has Pendle developed? Let's look back at the project's development process over the past time in the article below!
What is Pendle Finance?
Pendle Finance is a DeFi protocol developed on Ethereum that allows users to tokenize and trade future asset returns through an AMM mechanism. With Pendle Finance, users can flexibly apply many different strategies to optimize returns from their assets.
What is Pendle Finance?
When users deposit assets into Pendle, the underlying asset is represented through Principal Token (PT - Principal Token) and the expected profit is shown through Yield Token (YT - Yield Token). Because principal and interest are sent back through these two tokens, users can have more flexibility in managing their assets.
Users can trade these tokens on Pendle's AMM and withdraw before the maturity date to secure profits. In addition, users can also apply many different strategies such as long yield, fixed yield, buying discounted assets or combining all of these strategies to optimize profits. Currently, Pendle Finance is operating on version V2 and supports 4 blockchains: Ethereum, BNB Chain, Arbitrum and Optimism.
Outstanding events of Pendle Finance
November 2022: Pendle Finance launches V2
In November 2022, Pendle Finance deployed Pendle V2. These are updates that bring many new improvements including minimizing losses for liquidity providers, improving capital efficiency, less slippage in transactions and the ability to bring profits to liquidity providers from providing Liquidity for 1 asset but receive transaction fees for 2 types of assets.
Besides, Pendle V2 introduces the concept of concentrated liquidity and dynamic curve. Concentrated liquidity will optimize the liquidity of an asset within the expected price range, while dynamic curve will adjust the price appropriately to support this liquidity model.
Other features of V2 include auto-routing, variable fee rates based on interest rates, and gas fee optimization efforts to ensure cost efficiency. Innovation is also driven through the use of the TWAP oracle from Uniswap V3 for fixed interest products on Pendle V2.
January 2023: Pendle LSD
Before Ethereum made the upgrade based on the Shanghai update, Liquid Staking Derivative (LSD) solutions such as Lido, Rocket Pool, Stakewise, and Frax Finance attracted the investment community. This update may bring the ability to withdraw staked ETH, causing unpredictable fluctuations in ETH returns. In the context of market confusion, Pendle has proposed two solutions with available features on the project such as:
- Scenario 1: If you believe that the yield rate of stETH (tokenized ETH used in LSD) will increase, then users can buy YT-stETH. YT-stETH is a derivative that allows receiving the yield rate of stETH without having to stake ETH.
- Scenario 2: If you are worried that stETH's yield rate will decrease, users can buy PT-stETH. PT-stETH is a derivative that allows to receive a fixed yield rate on stETH.
Whatever scenario you choose, Pendle provides the right tools for you to express your market stance. This proves that Pendle is a potential project for users when providing solutions, promoting innovation in investment and risk management.
February 2023: Expand to Arbitrum
In February 2023, Pendle Finance expanded to Arbitrum, a Layer 2 blockchain on Ethereum. Pendle Finance has partnered with Camelot, the largest DEX on Arbitrum, to develop community values, features and mutual liquidity support. Pendle Finance will take advantage of LSD, to expand and amplify value for Camelot.
July 2023: Binance and Pendle Earn
Binance Launchpool
On July 3, 2023, the world's leading exchange Binance officially announced the listing of the Pendle project (PENDLE) on Binance Launchpool for the 35th time.
This event has attracted the attention of the Binance user community. Users can participate in PENDLE token farming by staking BNB and TUSD in separate pools over the course of 25 days, starting July 4, 2023. This opens up opportunities for the community to reach out and participate in one of the most advanced projects in the field of LSD.
Expanding to BNB Chain
On July 5, 2023, after seeing the effectiveness of expanding to Arbitrum, Pendle continued to announce the expansion of BNB Chain to enhance liquidity, increase yield rate for WBETH or ETH-frxETH and many other types. Other assets.
Updated Pendle Earn feature
In August 2023, Pendle Earn officially launched. With this feature, users can let their assets generate profits with simple operations.
Pendle Earn, despite its similarities to traditional savings products, is built entirely on the blockchain. Pendle Earn's user-friendly interface makes it easy to use for financial management and attracts users from centralized exchanges.
August 2023: Integration with OKX Wallet, expansion to Optimism, RWA and Binance Labs investment
Integrates with OKX Web3 Wallet
Pendle Earn has officially integrated on OKX Wallet. This is an important combination, opening up the possibility of linking the DeFi market with the CeFi sector, making it easier for new users to access the DeFi market.
Expanded to Optimism
In August 2023, the Pendle project announced its expansion to Optimism through the Velodrome project, an AMM project with TVL leading the Optimism ecosystem. With Velodrome, users can earn additional fees and PENDLE tokens by staking into liquidity pools.
RWA
Also around this time of the same year, the Pendle project announced the launch of an RWA-based product, supporting sDAI and fUSDC by partnering with Spark protocol and Flux Finance. With the above cooperation, Pendle can deploy fixed yields through RWA.
Binance Labs invests in Pendle
After listing PENDLE, Binance continued to invest strategically in Pendle Finance through the Binance Labs investment fund. Although the specific investment value was not disclosed, this move is an important step after Binance listed the PENDLE token on Binance Launchpool.
Binance Labs emphasizes that investing in Pendle is not only a commitment to support the cryptocurrency market, but also helps Pendle deploy profit optimization strategies across multiple ecosystems, creating capital optimization opportunities for both individuals. and the organization.
PENDLE price increased by more than 20% when Binance Labs announced the investment, demonstrating market interest in support from Binance.
October 2023: Pendle Academy
In October 2023, to make Pendle Finance more accessible to users, the project developed Pendle Academy. This is where all information and instructions for using Pendle for beginners are compiled from easy to difficult.
Spartan Group invests
In November 2023, Spartan Capital announced a further investment in Pendle Finance via OTC trading, highlighting awareness of Pendle's innovation potential and their important role in the development of on-chain yield trading. This investment round provides resources to support Pendle in its next phase and puts Pendle in the ranks of innovative projects with the potential to change the blockchain market.
STIP
On November 16, 2023, Pendle launched STIP - incentive asset management dashboard on Pendle's Arbitrum. This is a feature that helps users track the content, time, location and method of rewarding Pendle's ARB tokens.
summary
With the above events, it can be seen that Pendle Finance has proven that this is a project that not only always innovates in technology but also possesses the power to create promising new opportunities in the DeFi market.
Not only stopping at providing Liquid Staking Derivative and Pendle Earn solutions, Pendle has expanded its ecosystem. Pendle's integration not only helps users have a convenient experience on the blockchain, but also creates new investment opportunities, bringing DeFi closer to the user community.
