Pendle (PENDLE) Price

Many users often overlook projects with great potential in the field of Defi LSD finance due to the complexity of their knowledge. The most important aspect BingX Price Analysis Tool aims to achieve is to enable users to understand the value of a project in the shortest possible time, allowing them to easily decide whether to invest.

In simple terms, the concept of Pendle is: allowing users to trade tokens while they are still staked.

If users want to earn high returns from staking, the staking period is usually one year. Some users may need to withdraw tokens earlier for urgent needs, but since the tokens are locked, they have to wait. In real life, using a bank's fixed-term deposit, such as a 1-year term, would incur penalties for early withdrawal. However, in the blockchain, a decentralized market, such penalties are not necessary.

Pendle addresses the issue of trading locked tokens.

Pendle refers to the tokens staked as PT (Principal Token) and the earnings obtained as YT (Yield Token).

For example, staking 1 ETH for 1 year with an annual yield of 5%. The PT is 1 stETH, and YT is 0.05 stETH, with a lock-in period of 1 year. After 1 year, the user can receive 1.05 ETH.

After staking for six months, if the user needs to sell the staked 1 ETH, they can choose one of three options:

1. Sell the yield YT at a lower price, for example, 0.05 stETH at 0.04 stETH. Other users who choose to buy will only receive 0.05 stETH after the staking period.


2. Sell PT at a lower price, i.e., 1 stETH at 0.95 ETH. After the staking period, the user can still receive staking earnings, but because the principal is sold below the 5%, the staking earnings must be deducted by 5%.


3. Choose to sell both PT and YT. For example, staking for 1 year, selling 0.05 ETH at the price of 1 ETH. The buyer can obtain the 1.05 ETH earnings in a shorter time.

In addition to the mentioned benefits, users can also choose to long or short yields. Since the staking returns of POS tokens are not fixed and can change based on user participation, if more users choose to stake, the rewards will decrease. Conversely, if only a small number of users stake, the staking rewards will increase, attracting more people to stake. This is common in short-term staking.