What is Pendle (PENDLE)? Information, History and Analysis

Pendle (PENDLE) is a decentralized finance (DeFi) protocol that allows users to manage and trade future cash flows from cryptocurrency assets. By separating the principal and yield components, this protocol creates a flexible and innovative market within the DeFi space.

In this article, AZCoin will explore detailed information, development history, and provide a deeper analysis of the Pendle project with you!

What is Pendle (PENDLE)?

Pendle (PENDLE) is a decentralized finance (DeFi) protocol built on the Ethereum platform. It enables users to manage and trade future cash flows of cryptocurrency assets.

Pendle creates a market where cash flows from crypto assets can be split into two separate components principal and yield. This allows users to trade or lock up one component while retaining ownership of the other.

History of Pendle formation

Pendle was founded in January 2020 by a team of experienced developers in the DeFi space. They identified numerous limitations in managing risk and earning profits from traditional lending protocols, prompting them to develop Pendle to provide a more comprehensive solution for user needs.

After completing development and testing phases, the Pendle protocol was officially launched in February 2021. Upon its release, Pendle immediately garnered attention within the DeFi community due to its uniqueness and innovative capabilities. Since then, Pendle has experienced significant growth, attracting a large user base and partnerships worldwide.

How does Pendle work?

Pendle operates on the mechanism of Pendle asset trading, allowing users to separate profit components from the underlying assets. Specifically, each Pendle asset consists of two main components:

• Principal (PL): Represents the original value of the asset.
• Yield (YL): Represents the entitlement to future interest earnings.

With Pendle, users can buy PL to gain ownership of the principal value of the underlying asset. Alternatively, they can purchase YL to acquire ownership of the interest profit from the underlying asset. This flexibility allows users to manage capital and profit according to their preferences.

Additionally, Pendle integrates risk protection features such as automated swaps and insurance to help users mitigate risks when participating in transactions. Moreover, the protocol supports high liquidity, making it easier for users to execute transactions without liquidity constraints.

Pendle Highlights

Here are the key highlights of Pendle:

• High profit potential: Pendle promises high profit potential for users. By purchasing PL or YL, you can earn profits from underlying assets without directly participating in lending or borrowing activities.
• High flexibility: Pendle stands out with its high flexibility, allowing users to invest in various types of assets by buying PT or YT. This helps in managing capital and earning profits effortlessly. Additionally, Pendle integrates swap features, simplifying asset conversions and reducing transaction costs.
• Integration with multiple DeFi platforms: Pendle has integrated with various DeFi platforms such as Aave, Compound, Curve, Uniswap and SushiSwap. This enables users to easily trade and utilize Pendle assets across these platforms without the need for platform conversions.

Information about the PENDLE token

Technical information about PENDLE token

• Token Name: Pendle Finance
• Ticker: PENDLE
• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract: 0x808507121b80c02388fad14726482e061b8da827
• Token Type: Governance & Utility
• Total Supply: 251,061,124 PENDLE
• Circulating Supply: 96,950,723

Allocation of PENDLE tokens

• Incentive: 10%
• Ecosystem Fund: 19.2%
• Circulating: 65.1%
• Team: 5.7%

What is the PENDLE token used for?

Pendle Finance uses the veToken model similar to many DeFi platforms today, characterized by the following features:

• Users staking PENDLE to receive vePENDLE (locked for up to 2 years) will receive 3% of transaction fees from all profits, currently 100% of which is distributed to vePENDLE holders.
• vePENDLE holders have voting rights to participate in platform governance by incentivizing liquidity into pools and receive 80% of transaction fees from those pools.
• Liquidity Providers (LPs) in Pendle Finance who hold vePENDLE tokens will receive enhanced rewards.

Where to buy and sell PENDLE tokens?

Currently, you can trade PENDLE tokens on several best crypto exchanges such as Uniswap, Huobi Global, Gate.io, KuCoin, and OKEx. The popular trading pairs are currently PENDLE/USDT and PENDLE/WETH.

In which wallet to store PENDLE tokens?

PENDLE token is currently supported by ERC-20 compatible wallets such as Metamask, MyEtherWallet, Ledger Nano X, and Trezor. If you want to store PENDLE securely and safely, choose one of these wallets to store your tokens.

The end

So AZcoin has introduced you with detailed information about the Pendle project (PENDLE). Hopefully, the article has helped you understand Pendle better and provided additional information to decide whether to invest in this protocol. Wishing you success on your investment journey!