On Pendle's Earn Expansion

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Banking on LSTs as their growth catalyst. @pendle_fi's set to be DeFi's next blue-chip. Their recent product expansion, Pendle Earn, opens the gate to mass adoption. WAGMI! A 🧵 on Pendle, its Earn product, and the bull case (1/16)!

This thread will be split into 4 parts: 1️⃣ What is @pendle_fi [3] 2️⃣ Pendle's traction [4-5] 3️⃣ What is Pendle Earn [6-7] 4️⃣ Why it matters to you [8-9] 5️⃣ Personal thoughts [10-12]

1️⃣ What is @pendle_fi? Pendle is building an infra for yield tokenisation and trading. It allows you to trade on the yield component of yield-bearing assets (e.g., LSTs, GLP, etc.). Probably the best writeup on Pendle out there, by @eli5_defi. twitter.com/eli5_defi/status/1668318107910406144

2️⃣ Traction They've captured the LST narrative really well, proving PMF. And they're aiming even bigger with their Earn product! Rome wasn't built in a day, huge props to them! 👏

Growth has been parabolic since then, some notable ones: - Chain expansions (Ethereum, @arbitrum, @BNBCHAIN, @optimismFND, @0xMantle) - Listing on @binance's innovation zone; $PENDLE trading - Invested by @BinanceLabs - RWA expansion @spark_protocol @FluxDeFi - Integratiooons twitter.com/BinanceLabs/status/1694333672738979868

3️⃣ What is Pendle Earn If you're not familiar, top CEXes have Earn products, where users can deposit their assets and earn yields in a click. Yield sources varies (e.g., subsidies, native staking, premium for writing options, undisclosed, generic DeFi). Pendle's tapping in!

Repurposed. 'Buy assets at a discount' ➡ 'Earn yields simply'. 'Simple/Pro' ➡ 'Earn/Trade'. In Earn, YT's abstracted, emphasising on fixed yield through PT / boosted yields through LP-ing. Positioning itself as the go-to yield source for CEXes and other platforms. Huge.

3️⃣ Why it matters to you TAM is expanded, volume will go up, fees will go up. $PENDLE holders happy. 💸📈 As a trader, specifically yield trader. Deeper liquidity will give you better trades. Imbalanced deposits (high PT buy pressure) will open up arbitrage opportunities.

For DeFi, external capital flowing into DeFi is real bullish. And to protocols, integrating with @pendle_fi unlocks huge liq and innovation potential. Us over at @TimeswapLabs has enabled PT-GLP (and prev. PT-wsthETH) as collateral due to our oracleless design. twitter.com/pendle_fi/status/1689860969869258753

4️⃣ Personal thoughts Simple yet impactful rebranding. CEXes can simply 'dropship' yields into DeFi. Pendle is the benchmark for many protocols (incl. us) in terms of their comprehensive docs, seamless UX with a proper level of (optional) abstraction, amazing GTM.

Moat building through integrations: - Collateral utility via @TimeswapLabs @Dolomite_io - Governance aggregators @Equilibriafi @Penpiexyz_io - @okx Earn integration Some sexy Friend.tech stuff teased by @gabavineb. twitter.com/gabavineb/status/1693341347380625862

IMO, DeFi at our current state won't make it to the masses at all. Levels of abstractions are necessary. DeFi's better off being the infra layer for finance (at least FinTech). Our over-transparent nature will scare off retail users but is a blessing for integrations.

Again, their docs are one of the best in the space: docs.pendle.finance/Home app.pendle.finance/trade/education/learn handbook.pendle.finance/

Thanks for your support frens ❤️ @eli5_defi @defi_mochi @DAdvisoor @DegenCamp @thedailydegenhq @rektdiomedes @crypto_linn @2lambro @0xMughal @0xSalazar @ViktorDefi @0xPragmatism @jediblocmates @Grantblocmates @0x42069x @arndxt_xo @Only1temmy

(Some of the) chads behind @pendle_fi: @DDangleDan @imkenchia @ayobuenavista @Dill_Farmer @gabavineb Can't seem to find the accounts of others', hehe. 😘