On Thursday, May 6th, Dude’s Army community had the great opportunity to host an AMA with Pendle Finance’s team, very instructive and educational. We will share with you a little bit of what this experience was like.
To start the AMA with a good vibe I will give you freedom now to introduce yourself and share a bit of your background!
Hi everyone! I am TN, currently leading the team at Pendle.
Prior to Pendle, I started a company with Greg and YK, who are also part of the Pendle team today, to specialize in software engineering consultancy that caters to numerous layer 1s. The projects that we worked with include Tezos, IoTex, Zilliqa, Band Protocol, Stellar, Polygon etc.
Before then, I started my crypto career at Kyber, where I served as the Head of Business at Kyber.
That’s amazing brother! Love when I see a heavy crypto background on a CEO.
You have worked on lots of T1 projects so a lot of respect to that.
Explain our community what Pendle Finance is building and why the market will benefit from it.
Pendle is basically two things:
1. A protocol for tokenizing yield
2. An AMM for trading tokenized yield and other time-decaying assets
In conjunction, these two elements allow yield-bearing token holders to lock in their yields, and traders to speculate on changes in yield.
Pendle makes on-chain yield tradable, creating new avenues to maximize or protect returns. Additionally, the ability to trade yield across different time horizons will create forward yield curves across supported pairs, giving lending markets greater visibility and efficiency.
In the near term, we will be focusing on creating a base yield trading layer across DeFi. We see vast opportunities in this space, as yield bearing assets are not restricted to just individual tokens, but can apply to vaults, LP tokens and many more. . As we progress, we will work to generalize our AMM to support any type of asset with time-decaying properties, such that Pendle will become key to trading options, bonds, and any contracts with an expiration date.
First of all I want to reveal that when I first reached out to you brother I had no idea what it was about and then once you explained me what you were doing I was really impressed. The potential here is just next level and that’s a product that you will probably never see outside of crypto.
So congrats for having that idea and pushing it forward.
In regards to tokenomics… Can you comment a bit more how Pendle token will work?
The $PENDLE token will be key to the value accrual mechanics and management of the protocol.
At launch, it will purely be a utility token, and governance functions will be implemented after the protocol has matured sufficiently.
See the chart for the breakdown of token distribution.
We have distributed the private allocations in a way that the majority of backers hold under 0.4% of the token supply.
Sounds great! Now that you are already launched I want you to comment on few things:
- Private sale token vesting
- Exchange listings
Give me a quick explanation on how you are planning to push all of those.
All team, investor and advisor tokens are also vested, to ensure that incentives are aligned from the get go.
Investors are subject to 1 year vesting schedule, with 3 months cliff
Amazing vesting for a strong post listing action and long term support. Respect to that.
In regards to partnership, we have a few that we are in talks with, and will have more to announce soon. Generally, we want to work with yield avenues that are visible, and with high yield bearing asset TVLs
PENDLE tokens are now available on Sushiswap and Uniswap. We don’t have concrete plans for centralized exchange listing, and we would prefer to leave the listing decision to the exchanges.
Interesting decision. Not sure how that usually work out but with a great product and volume indeed exchanges will just list it no matter what
In regards to marketing, we generally focus on 2 aspects:
In regards to Content, we will continue to have a series of materials to be released over the course of the next few weeks.
For Engagement, we are very open to collaborating with different communities like Dude’s Army to share more about what Pendle does. We will also be hosting campaigns to incentivize some community activities, which will be announced shortly. And lastly, I will personally reach out to investors, thought leaders, and our key community members to ensure that they are informed of our roadmaps and our plans ahead.
Q1 from Memo:
Are “performance rights” really a specific amount of performance-generating assets? but really how can I buy and sell my performance rights for a fixed time?
I’m not sure what you mean about “performance rights”. Could you elaborate please?
Q2 from Yaritza:
I understand that Pendle’s future performance generators are not yet developed, but when will it really be available? Are you waiting for Eth 2.0 to be on the market to be much faster and more attractive?
Pendle will likely be ready within the next two months, subject to audit reviews. We are doing our best to eliminate as many bugs and loopholes as possible
Q3 from Bryant Javier:
The future yield generators provided in Pendle can all kinds of Erc20 tokens be used when it is developed? or will it really be for the most recognized tokens?
Pramod M | PolkaRare:
Pendle’s sources of liquidity are yield-bearing assets such as aTokens from Aave, cTokens from Compound, etc.
Upon launch, we’ll likely support Aave and Compound and selected assets. Subsequently, we’ll increase the support on Pendle, starting with Harvest, followed by a few other lending/borrowing platforms and vaults.
Q4 from Tahani SG:
How much additional return can we get with Pendle than just investing in any other DeFi protocol? Do you have numbers or estimated figures for this?
No I don’t have an estimated figure to address your question.
Q5 from Tahani SG:
That means you will never list on any Exchange if they do not listed by themselves? If so, considering the high gas fee do you have any plan to incorporate with a Layer-2 solution so that user can easily buy?
I don’t have much comment about exchange listing, because truthfully, exchanges have absolute control over the coins and tokens to list on their platform.
Instead, we will focus on product development and marketing the platform, and make it value-adding to both individuals and entities. With patience, I think the market will respond positively to our approach.
Q6 from Gutike:
I understand that with future yield tokens, users will be exposed to maximizing their profits with minimal capital, but is it really that easy to get those profits? Or is it really as risky as trading futures?
By offering capital efficiency, users can get more exposure to yields with the same amount of starting capital. However this is a form of leverage, meaning that your risk must be considered as well. There’s no free lunch!
About Pendle Finance
Pendle is the first protocol that enables the trading of tokenized future yield on an AMM (Automated Market Maker) system. Pendle aims to give holders of yield-generating assets the opportunity to generate additional yield and to lock in future yield upfront, while offering traders direct exposure to future yield streams, without the need for an underlying collateral. They currently support Aave and Compound, with more platforms on the way.
More information about Pendle Finance: