Key Points:
Pendle’s revenue flywheel is powered by vePENDLE, which allows holders to vote for and direct rewards to different pools. This system incentivizes liquidity in the pools and boosts incentives for staking, creating even more opportunities for yield. Additionally, LSDs are a high-utility feature, as they can be used to earn interest and supercharge yields.
With demand for liquidity and extended wait times for asset unlocks, investors will prefer instant unlocks via LSDs, making it more attractive to boost ETH yield while leveraging double-digit APY for one of the safest assets in crypto.
When considering valuations, Pendle’s current circulating market cap of $20m is just the beginning. With the potential for a 100x increase, the platform could scale up to a $2B market cap. Business development will be critical in increasing Pendle’s visibility and liquidity, and the platform’s current valuations and following demonstrate that they understand what it takes to get to the top.
In summary, Pendle’s unique approach to yield generation and hedging, simplicity, and revenue flywheel make it an attractive investment for the next bull run. With the potential for explosive growth, it’s no wonder that investors are flocking to this innovative platform.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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