Pendle Finance is one of the leading names in the LSDfi (Liquid Staking Derivatives finance) space. So, the Pendle platform presents different options to earn high yields on your assets.
We have a previous article on Pendle Finance showing the different ways to earn on the platform. However, we want to show you five top liquidity pools on the platform that are worth taking note of.
Where to Put your Tokens in Pendle Finance?
In one of its recent blog posts, Pendle claims that it performed a review of the performance of the following Pendle pools against the underlying asset:
- PT-stETH-26DEC24/SY-stETH (Ethereum)
- PT-GLP-28MAR24/SY-GLP (Arbitrum)
- PT-gDAI-28MAR24/SY-gDAI (Arbitrum)
The project concluded that providing liquidity in its pools outperforms holding the underlying asset. Pendle made two major observations about the cases studied.
- There was no impermanent loss (IL).
- The longer a person provides liquidity on Pendle, the higher the outperformance of the Pendle LP.
It's official – Pendle LPs experience zero IL + outperformance against naked base assets
Last week, we released a comprehensive study on Pendle LP performance and some of you've been asking where to get started…
So here are some of the pools (with highest APYs) to look at: pic.twitter.com/wDmReUWOeo
— Pendle (@pendle_fi) September 4, 2023
Liquidity Provision on Pendle
Pendle is an Ethereum-based decentralized finance (DeFi) protocol that intends to give users an easy-to-use platform for trading, yield farming, and liquidity provision of tokenized yield assets. Pendle enables users to engage in yield farming, which allows them to lend their assets to liquidity pools in return for rewards.
The pools on Pendle feature different tokenized yield assets. And these are created by splitting the yield generated by various DeFi protocols into tradable tokens. So, users who provide liquidity to these pools will earn a portion of the fees generated from the trading of the tokenized assets.
We are launching the $PENDLE Airdrop for our community!
Check eligibility and claim on our site:
⟶ $4,000,000 Distribution Pool
⟶ Distribution is based on on-chain activityAvailable to all Layer 2 Ethereum users! pic.twitter.com/nozRWPC7jH
— Pendle (@pendlle_fi) August 30, 2023
Pendle’s liquidity provision service is flexible. This makes it easy to use. Users can decide on a pool to provide liquidity based on their investment objectives, risk appetite, and the state of the market.
The Pendle platform also provides users with market insight such as real-time risk measures and historical data. So, users can access this data and decide on a more favorable pool to engage with.
Top 5 Pools on Pendle
Here are the top pools on Pendle to consider and their APYs.
|
Chain |
Pool |
APY |
|
Ethereum |
ankrETH-wstETH pool |
30.17% |
|
Ethereum |
Stargate USDT |
15.3% |
|
Ethereum |
fUSDC |
17.6% |
|
Ethereum |
swETH |
18.6% |
|
BNB Chain |
ankrBNB |
22.3% |
Is Pendle Finance a Good Investment?
Cryptocurrency investments are often determined by a person’s risk tolerance and investing objectives. So, the decision to invest in Pendle is ultimately yours. However, from a fundamental standpoint, Pendle has good use cases. And that makes it valuable.
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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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