Enzyme Integrates with Pendle to Provide New Yield Markets

We are thrilled to announce that Enzyme now supports Pendle, a permissionless yield-trading protocol where users can execute various yield-management strategies. Enzyme users can now leverage Pendle V2 on our Ethereum deployment to swap Principal Tokens (PT), provide liquidity to Pendle pools and claim PENDLE incentives by engaging in the ecosystem.

What is Pendle?

Pendle Finance is a decentralised finance protocol that specialises in the trading and management of tokenised future yields on Ethereum. It achieves this innovative approach by allowing users to separate ownership (principal) of the underlying yield-bearing asset from its future yield, creating tradable PT tokens. These PT tokens represent the principal of the underlying yield bearing asset and can be traded, leveraged, or hedged to optimise investment strategies.

Pendle’s V2 AMM introduces multiple features focusing on friendly liquidity provision, capital efficiency and flexibility. Here are some key points:

• Minimal impermanent loss (IL) for LPs
• Up to 200x improvement on capital efficiency from V1
• Low-slippage trades
• LPs earn fees from the trading of 2 assets while only providing liquidity for 1
• AMM can be optimised any specific yield ranges to optimise liquidity

What Does Enzyme’s Integration With Pendle Enable?

Enzyme is a protocol for smart, tokenized wallets designed to accelerate project outcomes and facilitate on-chain asset management. By integrating with Pendle, Enzyme presents its users with numerous ways to provide liquidity and earn attractive yields.

When users deposit assets, Pendle mints Principal Tokens (PT) representing the underlying asset and Yield Tokens (YT) representing its future yield. This approach allows users greater flexibility to manage their assets and engage in various yield strategies.

In contrast to traditional AMMs, Pendle’s AMM accounts for time decay, preventing potential financial losses due to mispriced assets. The model optimises capital while increasing exposure to future yields through incremental adjustments that accurately price assets, ensuring liquidity pools remain robust.

When interacting with Pendle on Enzyme, users can:

• Swap PT Tokens: Vault managers can deposit or withdraw different PT tokens based on their assessment of market conditions and yield optimisation strategies.
• Provide Liquidity on Pendle Pools: By providing liquidity to Pendle’s pools, vault managers not only contribute to the market’s depth but also earn transaction fees and additional rewards.
• Claim PENDLE & other Incentives from Liquidity Provision: Rewarding active engagement within the Pendle Finance ecosystem.

This integration ensures that vault managers have access to all PT tokens whose underlying assets are part of the Enzyme asset universe, thereby broadening the scope for sophisticated investment manoeuvres and enhanced portfolio performance.

For more information, please visit our docs: https://docs.enzyme.finance/~/changes/pdZ0ovabkr99Sw2j4Y4H/managers/trade/defi-protocols/pendle-v2

How to Add a Market

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. On the market view, click on “Add”.
4. Select your preferred TWAP duration.
5. Confirm the transaction and sign it with your connected wallet.

How to Delete a Market

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. On the market view, click on “Delete”.
4. Confirm the transaction and sign it with your connected wallet.

How to modify the TWAP duration on an existing market?

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. On the market view, click on “Edit” on the market you want to modify.
4. From the drop down list, select the new TWAP duration.
5. Confirm the transaction and sign it with your connected wallet.

How to Deposit Liquidity/Fixed Yield on Pendle

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. Locate the asset you wish to supply in the table view and click on the “Deposit” button.
4. Input the amount you wish to deposit and confirm by clicking on “Deposit.”
5. Confirm the transaction and sign it with your connected wallet.

How to Withdraw Liquidity/Fixed Yield on Pendle

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. In the table view, click on the “Withdraw” button for the asset you intend to withdraw.
4. Specify the amount you wish to withdraw and click on “Withdraw.”
5. Confirm the transaction and sign it with your connected wallet.

How to Claim Pendle Rewards

1. Go to your vault menu on the left-hand side panel and click on “Defi Protocols”.
2. Select “Pendle” from the protocols list.
3. Locate the “Claim” button in the rewards table view and click on it.
4. Confirm the transaction and sign it with your connected wallet.

Accelerating Growth for Builders and Managers

Enzyme’s smart, tokenized wallet infrastructure enables companies, DAOs and managers to accelerate project outcomes and facilitate on-chain asset management. Whether you’re building a dApp, managing on-chain assets or automating strategies, Enzyme can help you succeed.

Get in touch with the team to learn more about Enzyme’s suite of products and services.

• For business enquiries, please contact: luca@enzyme.finance
• For support enquiries, please contact: support@enzyme.finance