Bitcoin Yields as High as 45% on Offer in Pendle's New Pools

DeFi platform Pendle’s new pools allows users to earn floating yields up to 45% and fixed yields of 10% on a bitcoin-based token.The yields are achieved through staking service Lombard’s LBTC token in collaboration with Ethereum layer-2 network Corn.Pendle splits investments into principal tokens and yield tokens that can be traded separately, facilitating high-yield strategies by allowing users to trade future returns.

As a seasoned analyst with years of experience navigating the cryptocurrency landscape, I find Pendle’s latest move to offer high-yield pools for Bitcoin (BTC) particularly intriguing. The collaboration with Lombard and Corn presents an innovative approach to capturing yields, especially with the variable and fixed yields on offer.On Wednesday, the Decentralized Finance (DeFi) platform Pendle launched yield pools providing up to 45% returns on Bitcoin-supported tokens, thereby enhancing the platform’s core features.

This investment opportunity, capable of delivering a consistent annual return of 10%, enables users to place their LBTC tokens (issued by Lombard’s restaking initiative) into a Pendle pool created by the Ethereum layer-2 platform Corn. Since its launch, the pool has amassed more than $13 million in user deposits. The maturity date is set for December 26th.

CEO TN Lee shared with CoinDesk via Telegram that they’ve found significant applications for ETH with a fixed yield, and their goal is to achieve similar achievements with Bitcoin. They anticipate a bustling period ahead as they introduce new pools and launches in the coming weeks.

On Pendle, investments are categorized into two parts: the capital contributed by the investor (referred to as Principal Token, PT), and the rewards earned in the form of tokens from that investment position, known as Yield Token (YT). This division allows for both tokens to be traded on open markets, resulting in the high returns offered by Pendle’s pools.

Users have the option to purchase YT using LBTC, providing them with enhanced exposure to both the returns and corn-related aspects tied to LBTC until maturity. At maturity, the YT will hold no value. If users choose not to claim these rewards, they can opt for either a fixed return or a variable return, which consists of points that can be converted into cash and future tokens set to be distributed among LBTC holders as airdrops.

Bitcoin Yields as High as 45% on Offer in Pendle's New Pools

Lombard serves as a restaking platform, transforming Wrapped Bitcoin (WBTC) into Lombard Bitcoin (LBTC) tokens. These tokens can be utilized within DeFi applications for yield generation purposes. Meanwhile, Corn is a network that employs Bitcoin as its primary token to settle transaction fees.

Breaking down the technical terms: Liquid staking is when you deposit your cryptocurrency for a specific purpose, receiving another token in return. Layer 2s are blockchains that specialize in particular applications on top of a larger platform blockchain. Decentralized Finance (DeFi) involves utilizing self-executing smart contracts to offer financial services like loans and borrowing to users. A pool can be thought of as a digital safe where assets can be kept and returns earned, much like a bank account.

In the last 24 hours, Pendle’s PENDLE tokens have surged by 11%, as indicated by CoinGecko data, outperforming Bitcoin’s 2% increase.

2024-09-12 12:36

Bitcoin Yields as High as 45% on Offer in Pendle’s New Pools

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