| Header | Content |
|---|---|
| Author | Edson Ayllon (@relativeread) |
| Created | 2025-05-13 |
| Status | Draft |
Motivation
Adding Pendle will give managers a novel way to generate fixed yield, or speculate on future yield. Adding Pendle will give managers who engage in yield with deeper liquidity for yield.
Description
Pendle is a platform which creates markets on yield, creating yield derivatives based on future yield. Yield bearing assets are deposited and split into 2 tokens, a principle token (PT) and yield token (YT). The principle token represents the underlying asset’s principle without the future yield. The yield token represents the claim to all the yield generated for the lifetime until maturity date.
The value of the principle token at maturity date is known ahead of time, and the value of the principle token will always be less than the value at maturity as long as there is still yield to be harvested. Therefore, when a user buys a principle token at a given price, given the maturity price is known, they will see a fixed yield if held until maturity.
This proposal whitelists the process of minting PT and YT tokens, buying or selling these tokens on the market before maturity, and claiming PT tokens at maturity.
This proposal whitelists Pendle for all networks dHEDGE is or will be deployed in the future.
Implementation
Contract guards will be created for trading, minting, and redeeming PT and YT tokens. An initial release may only see PT tokens, with YT tokens at a later date.
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