DeFi

Pendle TVL drops 45% as major markets mature

Published

7 months ago

6 July, 2024

Pendle TVL drops 45% as major markets mature

Several liquid re-staking markets, including Ether.Fi’s eETH and Renzo’s ezETH, expired on June 27, forcing depositors to withdraw their funds.

Pendle’s Total Value Locked (TVL) yield trading protocol has fallen 45% in just one week, from $6.2 billion to $3.5 billion, according to data from DeFiLlama.

The sharp drop came as several liquid re-staking markets, including Ether.Fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH, matured on June 27. As these markets matured, they allowed users to redeem their principal investments, leading to substantial capital withdrawals.

Pendle CEO TN Lee told The Defiant that the large pools of Liquid Restaking Tokens (LRT) that started this year matured on June 27, totaling nearly $4 billion.

On PendulumLRT is divided into principal tokens (PT) and yield tokens (YT). When users stake assets like ETH, they receive PT-ETH, which can be converted back to ETH at the end of the staking period. YT represents the interest earned on the staked asset, which can be traded separately from the principal amount.

“Pendle’s mechanics worked exactly as intended,” Lee said. “Users claimed their PT and liquidity provider tokens while YT dropped to zero in exchange for leverage points.”

Another crucial factor in the decline in TVL was the decline in demand for YT. As several users left Pendle after the LRTs expired, demand for YT plummeted, causing PT yields to fall below 10%.

This drop led users to move their ETH to other platforms, which then caused the price of the PENDLE token to drop 40% from $7 to $4.2 in a week, according to CoinGecko.

Lee acknowledges that several users left Pendle after LRTs expired, leading to low demand for YTs. These tokens allow users to earn yield on their assets, but lose all value upon maturity.

Increase in TVL

In April, Pendle TVL jumped up by 40%, reaching nearly $3.9 billion. This increase is mainly due to increased demand for exposure to DeFi protocols.

Pendle capitalized on this demand by offering traders a way to gain leveraged exposure to EigenLayer and LRT protocols like EtherFi, Swell Network, and Puffer Finance.

EigenLayer points can be earned by re-staking ETH or LST such as Lido’s stETH through the protocol.

When traders purchase YT, they have the opportunity to collect additional airdrop points. The idea behind this is that the airdrops received will be worth more than the cost of purchasing the YT.

According to Token Terminal dataPendle’s daily active user count has dropped from a peak of 23,000 in April to less than 1,000 today. In May and June, the number of daily active users ranged from 3,000 to 5,000.

Pendle introduced a rollover feature to help users transfer their liquidity to new pools.

“Despite the drop in TVL, this is an integral part of our platform lifecycle. The renewal process ensures that users can move their assets seamlessly,” he said.

According to Lee, the APY is not as high as Before (over 40%), and new pools could suffer from price impact due to lower liquidity. “Still, Pendle remains a place for good ETH yields.”

Recovery plans

Lee noted that Pendle is working with other protocols to recover TVL.

“We’ve had discussions with protocols and some have provided higher multipliers,” he mentioned. “For example, EtherFi gave us a 4x multiplier and some of our pools on the Arbitrum network are incentivized with $ARB tokens for LPs, so there’s good opportunity in the Pendle pool on Arbitrum right now.”

Pendle also rolled out features like zero price impact mode and limit orders. “We added a PT and LP rollover feature and highlighted pools that are currently offering good APY.”

Lee concluded that the Pendle team is developing PendleV3 to introduce new yield strategies and meet the needs of emerging markets.

“Pendle supports any yield-generating asset. Pendle has seen growth in the first half of the year from the points meta, which allows for leveraged point farming or very nice fixed yields,” he added. “While this remains our primary growth driver, we are always open to exploring and experimenting with other asset types, both inside and outside of resttaking. We are particularly supportive of supporting yield-generating assets outside of ETH, such as BTC.”

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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