What is Pendle?
Pendle (PENDLE) is an innovative yield-trading protocol designed to grant users the ability to influence their future yields through tokenisation and trading. This ecosystem aims to democratise access to yield trading in the cryptocurrency market.
Pendle Ecosystem Features
Yield Tokenisation and Trading
The core functionality of Pendle lies in its ability to tokenize yields, allowing users to separate the present value of their yield from its future potential. This provides a unique opportunity for users to trade future yield streams freely.
Automated Market Maker (AMM)
Pendle employs an automated market maker model, which facilitates seamless trading between users seeking either fixed or flexible yields. This system enhances liquidity within the market and offers users a more streamlined trading experience.
Governance Token: PENDLE
The PENDLE token serves as the governance token within the ecosystem. Holders can exchange PENDLE for vePENDLE (vote-escrowed PENDLE), enabling participation in governance decisions and voting on key proposals. This structure aims to decentralise the power within the Pendle ecosystem, promoting a fairer decision-making process.
Rewards for Token Holders
In addition to trading opportunities, Pendle allows its token holders to lock their tokens for up to two years. This mechanism incentivises long-term holding by providing additional rewards, thereby fostering a sense of community and loyalty among users.
Permissionless Yield Aggregation
Pendle positions itself as a permissionless yield aggregation protocol, meaning that anyone can participate in trading yield fluctuations. By removing barriers to entry, Pendle seeks to expand its user base and promote inclusivity within the cryptocurrency space.
Main Goals of Pendle
Pendle aims to make directional trading on yield fluctuations accessible to all, breaking down the complexities traditionally associated with yield trading. By leveraging a robust framework, Pendle strives to open up this sector of the cryptocurrency market and empower users to make informed trading decisions.
Relevant Websites
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