Pendle in Wonderland
Pendle has recently partnered with Wonderland, and we are proud to be officially part of the Frog Nation!
Pendle and Wonderland are both firsts of its kind — the first yield trading protocol and the first decentralized reserve currency protocol on Avalanche respectively. Our partnership will strengthen the ecosystem and give yield farmers more control over their assets and yields.
Wonderland currently has more than $1.5 billion in TVL, and their token $TIME has a market cap of over $2.3 billion. Wonderland allows $TIME holders to stake their $TIME, giving MEMO in return, which is a yield-bearing asset.
Pendle will be supporting wMEMO (wrapped MEMO).
Minting (🫖, 🫖)
Mint YT (Yield Token) and OT (Ownership Token) with wMEMO.
YT represents a claim on future yield of MEMO until the expiry of the contract, i.e. if the contract duration is two months, holding YT entitles you to collect the yield of MEMO over two months.
OT represents ownership of the underlying asset without any yield, as such holding OT-wMEMO would be equivalent to holding MEMO.
You can redeem the underlying wMEMO at any time with YT and OT, or with just OT at contract expiry.
APY Now — Fixed Yield on wMEMO
We’re all in MEMO for the insane APY, but there’s just a small issue — it fluctuates over time.
Don’t want that uncertainty? Sell YT-wMEMO to lock in your yield at implied rates. Even better, you get your yield upfront in MIM.
Use it to buy a lambo right now, or you can use it to buy and stake more $TIME so you can buy 10 lambos in a year’s time!
APY UpOnly — Lever-up your APY
Bullish on MEMO APY? Buy YT-wMEMO to get exposure to its yield without actually owning MEMO.
Since YT costs less than the underlying, you can buy more YT with the same amount of capital and leverage your exposure to yield without borrowing and the associated liquidation risks!
It’s a no-brainer: same risk, more reward.
Biding your $TIME to pump? Buy OT-wMEMO to hold $TIME at a discount.
OT-wMEMO will always be at a discount to MEMO because of this simple formula:
YT-wMEMO + OT-wMEMO ≈ MEMO
If you are bullish on $TIME, simply buy OT-wMEMO and hold until expiry to redeem for $MEMO 1:1.
Staking (🎩, 🎩)
Want more APY to go with that APY? Earn swap fees by providing liquidity to YT and OT pools and earn $PENDLE incentives by staking your LP tokens.
Sounds like a lot of steps, but fret not, we’ve simplified the whole process into one simple button. Just Zap equal value of $TIME and $MIM and the contract will do the rest for you.
Turbo-boost your APY with just one click!
Pools go live Thursday, 16 Dec 2021, 7am EST. Stay updated via our Discord and Twitter. See you in Wonderland!