NewsFlash Articles Data Fundraising BlockBeats Pro

Penpie - an interest-bearing asset aggregator built on Pendle.

Read this article in 13 Minutes

Pendle has been exploring the interest rate trading field, making a name for itself with LSD and RWA, while at the same time, platforms like Penpie, which are based on Pendle for bribery, are also emerging.

The content you provided is:

Source: NiuBite

One, LSD+RWA, the strongest narrative for the next bull market.

At this time last year, in September 2022, Ethereum's The Merge was successful, and ETH officially transitioned from POW to POS. This marked ETH as the largest interest-bearing asset in the entire cryptocurrency market, and also gave birth to the LSD track. Unfortunately, Ethereum's transformation coincided with a downturn in the entire crypto market, and the power of LSD was not fully demonstrated.

On the other hand, as the yield of the cryptocurrency market gradually decreases, funds in the cryptocurrency market, especially stablecoins, are starting to look for higher-yielding opportunities, and they have turned to US Treasury bonds. In RWA (Real World Assets), US Treasury bonds are the most standardized and liquid. Therefore, we see that MakerDao, the big brother of decentralized stablecoins, has turned to RWA without hesitation. As of now, MakerDao's RWA has reached a scale of 3 billion US dollars.

At this point, the two strongest asset categories for generating income have been officially established. One is earning ETH (referred to as LSD hereafter), and the other is earning stablecoins (referred to as RWA hereafter).

On the LSD track, we see Lido's dominance, on the RWA track, we see MakerDao's unwavering determination, and on the LSD+RWA track, we witness Pendle's magnificent transformation.

On August 23rd of this year, Pendle announced that it had received investment from Binance and was listed on the Binance exchange. On August 24th, Pendle announced the listing of two RWA assets, sDAI and fUSDC. Thus, Pendle's business scope emerged, which is LSD+RWA. The price of PENDLE has increased more than 10 times from the beginning of this year to now, which I believe is the market's recognition of its business transformation.

PENDLE price trend

is not a new project. As early as 2021, it began to explore the interest rate trading market. At that time, I remember there was also a project called , but unfortunately, the cryptocurrency market at that time did not have many interest-bearing assets, and the projects in the interest rate trading field were also struggling. Therefore, it was not until this year that finally turned the corner and began to shine.

Pendle's liquidity pool yield

In Pendle's token economics, holding vePENDLE can be used to accelerate (Boost) and earn higher returns. Seeing the prefix "ve," we know that Pendle has borrowed Curve's ve incentive mechanism.

Defi OGs all know a piece of "war history", which is the Curve War. Simply put, it is a battle for veCRV to gain more rights. In that war, Convex became the biggest winner.

And the protagonist of this article, Penpie, plays a role and position in Pendle that is comparable to the role and position of Convex in CRV.

二、Penpie——基于 Pendle 构建的生息资产收益聚合器

Translation:

2. Penpie - An Interest-Bearing Asset Yield Aggregator Built on Pendle

Users can deposit PENDLE into Penpie and receive mPENDLE, which can be exchanged for PENDLE at any time on the secondary market (Wombat). The Penpie project team will lock all acquired PENDLE for 2 years to obtain vePENDLE.

For users, they can obtain higher returns than vePENDLE, (higher returns come from the profit sharing of PENDLE obtained by Penpie, as well as PNP token subsidies), and release their own capital liquidity.

For the project party Penpie, they can obtain a large amount of voting rights and the corresponding benefits.

In addition, liquidity providers of Pendle can stake their LP Tokens on the Penpie platform to earn accelerated rewards without needing vePENDLE, and the rewards are higher compared to Pendle.

Penpie's earnings

Pendle provides basic yield and maximum Boost yield

Three, PNP Token

Penpie's token is PNP, with a total supply of 10 million and no VC or private placement. 2 million tokens were distributed through IDO at a price of $0.3. Currently, there are 2.28 million tokens in circulation, but more than half of them are locked. As of the time of writing, the PNP price is $1.04, and liquidity is mainly concentrated on the Camelot DEX on Arbitrum.

PNP Token Distribution

PNP Token Issuance Speed

In terms of token economics, PNP can be locked as vlPNP to obtain voting rights on the platform, indirectly obtaining voting rights on vePENDLE held by the platform. To put it simply, if we consider vePENDLE as a vote, as a holder of vlPNP, you can decide the voting rights of the platform's 7.74 million vePENDLE. If that's still not clear, you can think of PENDLE as a sheep and PNP as a sheepdog. Controlling the sheepdog means controlling the flock.

Penpie's business data

Four, Competitors, Valuation and Shortcomings

It is worth noting that there is not only one platform like Penpie in the market, but also another one called Equilibria. The business logic of the two platforms is exactly the same, and the amount of locked PENDLE is also similar. P platform has locked 7.74 million vePENDLE, while E platform has locked 7.6 million vePENDLE. The total amount of PNP is 10 million, and the total amount of EQB is 100 million. For more details, please refer to the Dune dashboard created by Twitter user @wu_xiuchen, which provides very detailed data: https://dune.com/coumarin/pendle-war. Moreover, the author also gives his dynamic price range estimation for PNP and EQB at the end.

From the above figure, it can be seen that currently, for every 1 locked PNP, there are 6.52 vePENDLE behind it, and for every 10 locked EQB (EQB total is 10 times that of PNP), there are 12.4 vePENDLE behind it. Therefore, in comparison, the current EQB has a higher amount of P (endle) and is more worth purchasing.

As for the vertical growth potential of Pendle and its bribery platform in the future, I personally believe that we can refer to the data of Convex and Curve. Please refer to the following table:

Different methods for PNP price prediction

Overall, if we look at the business data and scale of Convex and Curve, the price range for PNP is between 1-14 US dollars. The calculation is relatively mechanical, and currently the price of PNP has reached the lower limit of the predicted range.

The core issue here is that for stablecoins, the Curve pool is necessary, but it is unclear whether Pendle is a must-have for LSD and RWA projects. As for the Penpie project specifically, the team is anonymous and has undertaken four similar projects in quick succession: Magpie, Penpie, Radpie, and Campie, based on Wombat, Pendle, Radiant, and Camelot, respectively. This is a significant test of the team's execution ability.

Overall, after two years of struggling in the interest rate trading field, Pendle has begun to shine with the help of LSD and RWA. At the same time, platforms like Penpie and Equilibria based on Pendle have emerged, competing for vePENDLE. However, the future market space of Pendle and its influence in the two fields are yet to be tested. It is also certain that projects like Penpie and Equilibria will rise and fall with Pendle. Meanwhile, there will be arbitrage opportunities among the three projects due to the transparent vePENDLE holdings behind them.

Here, I would like to express my special thanks to the following bloggers. Your selfless sharing has enabled me to understand this project more quickly and comprehensively.