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The financial industry is being rebuilt on open rails, with DeFi potentially developing into a stand-alone financial system. Yields can be traded in bond coupons, interest rate swaps, or other financial instruments in a strong and growing capital market. Pendle aims to help DeFi reach future milestones.
Let’s learn about Pendle and how you can buy it in India in this blog.
Pendle: What it is, the History, And the Goal
What is Pendle?
Pendle is a permissionless DeFi protocol that allows tokenizing and trading future yield using an Automated Market Maker (AMM) mechanism. This yield-trading protocol is implemented on the Ethereum network and EVM-compatible chains Arbitrum and Avalanche, and it offers a platform where users can apply various sophisticated yield strategies. Pendle fundamentally enables people and protocols to make the most of their profits, regardless of the market’s current condition.
The History
Pendle Finance was launched as the first yield tokenization protocol on the mainnet in June 2021 after being introduced on Ethereum. And since hitting the market, this protocol has developed into one of the DeFi space’s projects with the quickest growth rate, with a combined value of $45.7 million locked over three chains. Pendle also has a framework that works with Compound and Aave, two other DeFi platforms.
The Goal
The main objective of Pendle Finance is to create an environment for crypto investors who own yield-generating assets with time decay, allowing them to increase their profits and lock in prospective gains upfront. Additionally, without requiring underlying collateral, the protocol attempts to give traders direct exposure to future yield streams. Pendle uses three crucial elements to accomplish this, namely:
- Yield Tokenization
- Automated Market Maker (AMM)
- Governance
Features of Pendle
Pendle presents a range of advantageous features that enable investors to optimize their returns on yield-bearing assets while maintaining flexibility with their collateral. These features include minting, swapping, farming, and claiming; let’s have a closer look at each of them.
- Mint
Within the Pendle platform, users can mint tokens by depositing yield-bearing assets. Users can specify the transaction details through the Markets tab in the interface, including the input asset, desired asset, and maturity parameters. This process results in the creation a Principal Token (PT) and a Yield Token (YT) associated with the underlying asset. Minting effectively separates the asset from its future yield, allowing users to utilize these tokens independently for various purposes.
- Swap
Users can sell or swap the tokens once the YT has been minted. Depending on the fluctuations in the underlying asset’s value, this action can yield substantial profits. Moreover, swapping provides an opportunity to swap one asset for another that may offer a higher future yield. The original PT can also be independently swapped. Swapping operations are conveniently conducted through the Markets section of the interface. Users can specify parameters such as slippage, transaction volume, input and output assets, and maturity by selecting the Swap tab.
- Farm
Users can also choose to add the YT to a liquidity pool. Users can make informed decisions by reviewing information such as maturity, total liquidity, and Annualized Percentage Yield (APY) for each pool. Contributing to a pool grants users liquidity pool tokens, enabling them to earn liquidity incentives. These incentives continue until the liquidity pool tokens are redeemed. To enhance the APY, vePENDLE can be employed.
- Claim
The token loses its value when a YT’s established expiration date lapses. Users must then decide whether to redeem the asset before the expiration or roll it over to create a new expiration date. Redeeming the token requires possession of both the PT and YT, which may entail obtaining a liquidity provision from the pool or purchasing new tokens from the market, depending on the circumstances.
To claim the YT, rewards, and swap fees, users can simply navigate to the Markets section and click the “Claim Yield and Rewards” option. Users can select specific rewards and gas fees they wish to claim by toggling through the available choices. Additionally, users have the flexibility to choose the type of token they prefer for the claim, whether it be a raw token or USDC.
Pendle Tokenomics
Total Supply – 231,725,335 PENDLE Tokens
Circulating Supply – 203,643,672 PENDLE Tokens
Market Capitalization – $186,633,789
24-Hour Trading Volume – $20,962,183
Price – $0.9172 per PENDLE token
(Data is taken from Coinmarketcap)
During the initial distribution of PENDLE, a breakdown of the token allocation consisted of 37% dedicated to liquidity incentives, 22% allocated to the team, and 15% assigned to investors. An 18% allocation was also designated for the ecosystem fund, and 7% was utilized for liquidity bootstrapping. The remaining 1% of the token supply was reserved for advisors.
However, a revision to PENDLE’s token distribution has been implemented as of October 2022. Under the revised distribution, 65.1% of the tokens are now allocated to circulation, with 19.2% directed towards the ecosystem fund. Furthermore, 10% of the tokens are dedicated to incentives, while 5.7% are allocated to the team. Notably, the tokens allocated to the team are vested until April 2023. Weekly emissions have been set at 667,705 tokens, gradually decreasing by 1.1% each week until April 2026.
How to buy PENDLE tokens in India?
Below are a few simple steps you can follow and buy the PENDLE token in India with WazirX, India’s most trusted and widely used Crypto exchange.
The best way to buy PENDLE tokens is using P2P trade. To get answers to all your queries related to the P2P trade, click here!
Bonus point: INR Deposits are also LIVE on the WazirX platform. Now, you can buy PENDLE tokens using INR.
Step 1 – Sign-Up on the WazirX platform
To begin buying and selling PENDLE Crypto, you are required to create an account on the WazirX platform by signing up. Also, you can directly Log-in if you have an account already on the platform.
For your reference, here’s how you can open an account on WazirX.
Step 2 – Set up your account security by verifying your email address.
This step is about verifying your email address. After you sign up on the WazirX platform, you’ll get a verification link on your registered email. By clicking on that link, you’ll get two options to ensure the security of your account – the authenticator app and mobile SMS.
Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 3 – Complete the KYC process.
After choosing your country, you can proceed with completing the KYC process. Click here for a detailed overview.
Note: You must complete your KYC to be able to trade P2P or withdraw funds on the WazirX app.
Step 4 – Add funds to your WazirX account using P2P.
After integrating your bank account into your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will act as funds to help you buy your favorite Cryptos.
Step 5 – Finally, buy PENDLE on WazirX.
You can now easily purchase PENDLE tokens using P2P trade on the platform. Check the PENDLE to INR rate from here and PENDLE to USDT here.
After logging in to your WazirX account, you can choose USDT from the “Exchange” tab. You can also check all the price charts, order book data, and an order input form on the right side of the screen.
Click “Buy” after entering the amount and checking the total USDT amount to be paid.
Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.
It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the PENDLE Coins you purchased in your WazirX wallet.
Happy Trading!
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
