Research Summary

The article is an interview with TN, the co-founder of Pendle, a DeFi protocol that has grown from $8M to $127M in TVL in the last 12 months. Pendle is a permissionless yield-trading protocol where users can execute various yield-management strategies. The protocol aims to bring the $400T interest rate derivative market to DeFi, which is currently one of the smallest sectors in DeFi. Pendle allows users to lock in rates, which was largely absent in DeFi, and offers a predictable income. The protocol is built on top of other protocols rather than competing for liquidity. The article also discusses the challenges Pendle faced, its growth strategy, and its plans for the future.

Actionable Insights

  • Understand Pendle: Pendle is a significant player in the DeFi space, aiming to bring the massive interest rate derivative market to DeFi. Understanding its workings can provide insights into the future of DeFi.
  • Consider the benefits of yield trading: Pendle offers a unique approach to yield trading, allowing users to lock in rates and potentially earn higher APYs. This could be a lucrative strategy for crypto investors.
  • Watch Pendle’s growth strategy: Pendle’s plans for integration with other protocols, simplifying the product, and allowing permissionless listing of assets on the protocol could indicate future trends in the DeFi space.

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