In DeFi, one of my highest convictions this cycle is
@pendle_fi
Cuz it is becoming the market where onchain cash flows get priced and the PT, YT logic applies to crypto staking, perp funding, T-bills, points, credit yield and now tokenized stock dividends.
Remember tokenized stocks do not become meaningful DeFi collateral merely when they launch but they become capital markets when someone can price their cash flows. Pendle’s NVDA and PFE dividend markets on RH chain are the first proof of that direction. It already showed PMF with STRC, which had over $500M on Pendle at peak. The new market set (NVDA, PFE, sGOV T-bill yield, USDat and ecosystem assets) is a much larger option set.
Also $PENDLE mechanics are exceptional (which is rare as a DeFi token) 👇
1. 80% of relevant holder revenue is routed to sPENDLE holders.
2. Pendle reports 2.82M PENDLE bought in the open market (about $4M in roughly 7 months)
3. Emissions are down 78% since the start of the year; cited annual inflation is about 0.5% vs buybacks exceeding 1.5% of supply YTD
4. About $228M of the protocol’s TVL is sPENDLE, creating a real float sink
And remember
@boros_fi is the sleeper cuz if Pendle’s PT/YT markets create onchain term rates, Boros financializes funding itself.
Yes current fee production is not yet huge which I think will rise heavily in the coming months. Reported 30D revenue is about $580K and holder revenue about $464K. Personally I am buying future rate market activity which will become a mature + stronger cashflow machine. I do not need Pendle to own all financial markets, I only want it to become the default venue for a material share of onchain yield which I think they can achieve this cycle.
h/t to
@Shaurya477 for the data