Pendle x Olympus Pro
Pendle is an Olympus Pro launch partner!
TLDR: Obtain PENDLE at a discount by depositing your PENDLE/ETH SLP Token.
Olympus Pro is a service for protocols to own their liquidity by utilizing bonds. Pendle currently emits PENDLE as incentives in order to bootstrap liquidity. However, this can present negative pressures from mercenary capital which protocols actively aim to reduce.
With Olympus Pro, users will be able to obtain PENDLE at a discounted rate by “bonding” (exchanging) their PENDLE/ETH LP tokens on Olympus. These bonds have a one-week vesting period and the discounted PENDLE can be continually claimed as they vest.
This will be an 8-week program with 3M PENDLE made available. The Olympus team will be advising on adjustments to be made throughout the program.
What does Olympus Pro mean for Pendle?
The bonding program allows a protocol to begin the process of acquiring liquidity. Olympus is the best case study on the effectiveness of this approach, having amassed over $150M in assets within the first six months of launch.
Applying the same model with Pendle, a portion of our emissions will be redirected to acquire liquidity, allowing the protocol to own the Pool 2 liquidity. This ensures an ever-growing liquidity pool as the bonding program progresses. On top of that, the protocol-owned liquidity also generates revenue and can be utilized for further ecosystem growth.
This bond program also synergizes well with (Pe,P) in creating a healthy Pendle token ecosystem. Users can obtain PENDLE at a discount by purchasing bonds and redeploying them to (Pe,P) which also contributes to the Pool 2 liquidity.
For newcomers, a recap on (Pe,P):
(Pe,P) is the first offering we have for long-term Pendle holders to contribute to the protocol and be rewarded for it. (Pe,P) achieves 3 things:
- Continually incentivizes deeper PENDLE liquidity
- Provides useful liquidity to the Pendle protocol
- Rewards those with the most skin in the game
Learn more about Pe,P here.
Fees
The Olympus treasury will receive a flat 3.3% fee for each PENDLE bond sold. Considering the benefits to Pendle and their expertise in the space, this is a reasonable fee to align incentives. Olympus has diamond hands and we see this as a reduction in PENDLE circulating supply and a promising start towards protocol-protocol coordination and cooperation.
Alfalfa for reading this far:
The Olympus Pro program is especially important as we prepare for cross-chain deployment without printing additional incentives. The existing tokenomics will remain unchanged.
This bonding program comes in at just the right time to ensure the protocol can sustainably maintain a cross-chain existence. To prepare for the first cross-chain deployment, we will also be adjusting our incentives to focus on the PENDLE tokens and bonds while keeping dry powder for the next launch.
Bonds, lower PENDLE supply, cross-chain demand. What mean anon?
Stay tuned for bonding and incentive updates.
Latest Incentives: https://pendle.notion.site/Liquidity-Mining-30f87109ca7c4b69acfea088d5df01bd
