Pendle — Status Update

08 Jun Update: As of June 8th, XYT has been renamed to YT.

Pendle is a couple of weeks away from introducing yield derivatives to the crypto economy.

Here’s an update on what we’ve accomplished to date, and what still needs to be done before we launch this new DeFi primitive and AMM for time decaying assets.

Recap

A few weeks ago, we conducted our token distribution event through liquidity drop bootstrapping (LDB), making us the first team to utilize flash-bots to bootstrap liquidity. Following the event, we seeded liquidity into a Sushiswap PENDLE-WETH pool, which is now part of Sushiswap’s Onsen program!

Alongside the pool’s 160% APR (at the time of writing), liquidity has doubled from the initial $2M seeded to $4M. Check it out here! The overall PENDLE distribution has also improved, increasing from 753 holders at the end of the LDB to 1337 holders at present.

Additionally, we’re happy to share that our Discord community has more than doubled (4k members currently) within a month! We’re grateful for the support and will continue pushing out more content and community activities.

Current Status

Our initial audit by Least Authority has been completed, pending a final report. Given the importance of security, we have also engaged 3 whitehats to review our contracts. Barring any major bugs, we are aiming for a launch in June.

Our engineers have been working on improvements from the earlier testnet release, including changes to the UI, bug fixes and codebase rewriting for enhanced security. Gas optimization has been high on our priority list as well — we’ve managed to reduce gas consumption for a swap by up to 50%.

At launch, Pendle will support Aave V2 and Compound. Our aim is to bootstrap liquid pools of YT on the Pendle AMM, to ensure a suitable environment for traders to explore this new DeFi primitive. As such, we will be incentivizing LPs for supported YT-USD pools.

We will also be supporting Aave V2 and Compound liquidity incentives! OT holders will be able to claim stkAAVE and COMP incentives, bringing a new dynamic to the OT-YT relationship. OT holders are true ‘owners’ of the underlying token, while YT holders gain all the speculative benefits of exposure to yield.

Additionally, we will be adding incentives to the PENDLE-WETH Onsen, so LP stakers can expect to earn dual incentives from both Sushi and PENDLE once live.

At a high level, this is what to expect — we will share more details once finalized!

Future Plans

There are many shapes and forms as to how Pendle can grow in the future. We aim to create a base yield layer that can be utilized as a primitive of its own. If you have ideas on how you can build on top of Pendle, we’d love to speak with you!

The following are some of the high priority items we will be focusing on post mainnet:

• Support for more platforms that issue yield-bearing assets (more lending/borrowing protocols, vaults, tranches, etc.)
• Expansion of token pairs and expiries
• Deployment on other blockchains and Layer 2s
• Trading/gas rebate program
• Incentives optimization
• Governance

We’ve been working hard and can’t wait for our mainnet launch. Join our Discord channel and follow us on Twitter & Telegram to stay up to date.

We are currently looking for a frontend engineer and a solidity developer to join the team, do reach out to us if you’re interested!