The LSDFi narrative broke out, and this article understands 3 projects worthy of attention in the Pendle ecosystem

Original article: "Three projects worthy of attention in the Pendle ecosystem"

Author: Leo

With the rise of LSD narration, Pendle, with its high-quality project design, team and Token economy, has performed particularly well among the projects on the LSD track. The price of PENDLE Token and TVL have both achieved skyrocketing. The increase has been nearly 16 times (0.05-0.8).

Just yesterday, Binance announced the launch of the new Launchpool project Pendle (PENDLE). Affected by it, PENDLE broke through $1.7 within 5 minutes, an increase of as much as 76.83%. The Pendle ecology may soon usher in a PENDLE war. The following are three projects worthy of attention in the Pendle ecology, classified according to the TVL ranking, namely Penpie, Equilibria, and Stake DAO.

Penpies

Penpie is a product jointly launched by Magpie and Pendle, aiming to provide benefits and veToken promotion services for Pendle Finance users. Lock PENDLE Token to obtain governance rights and higher income in Pendle Finance.

The way Penpie works is that it allows PENDLE holders to earn high yields by converting their PENDLEs into mPENDLEs, the Penpie version of the PENDLE token. Users can lock mPENDLE on Penpie and get PENDLE benefits. When a user converts PENDLE to mPENDLE, Penpie will automatically lock the converted PENDLE to vePENDLE in Pendle Finance. This mechanism enables PENDLE holders to earn greater returns through mPENDLE, while also granting Penpie governance rights and higher APR as an LP of Pendle Finance.

The voting rights accumulated by Penpie through its vePENDLE holdings are shared among vlPNP holders, enabling them to participate in the governance of Pendle Finance in a cost-effective manner, which can be locked into vlPNP to obtain its benefits.

Vote-locked PNP holders can earn a share of revenue from the platform and can influence Pendle Finance's governance while maximizing their returns. Similar to viGMP, users must wait 60 days for vlPNP to fully unlock as PNP.

Equilibria

Equilibria's social media introduction column clearly says: "The first income booster on Pendle, born exclusively for Pendle, pushing income to new heights", and Equilibria has indeed taken on Pendle's "Convex "character of.

A brief introduction to Equilibria. The Equilibria platform is led by a DeFi OG team with many years of industry experience. It aims to customize and optimize Pendle Finance to maximize the benefits of PENDLE holders and liquidity providers. Equilibria uses the veToken/improved income model adopted by Pendle Finance to provide higher income for LPs through ePENDLE, the tokenized version of vePENDLE, and provide additional rewards for PENDLE holders.

Features of Equilibria

LPs on Pendle can increase their yield by depositing Pendle through the Equilibria platform, even if they do not hold any vePENDLE.

PENDLE holders can convert their PEDNLE on the Equilibria platform and receive ePENDLE (the liquid version of vePENDLE), the original token is locked on the Pendle platform. In addition to receiving benefits associated with PENDLE itself, ePENDLE holders can also stake to earn rewards that can be redeemed back to PENDLE on the DEX.

Equilibria Advantages

First of all, too many agreements have proved to us that the veToken era has arrived (projects such as Curve/Convex and Balancer/Aura). The era of vePendle will also come, and what Equilibria is doing is to help Pendle develop and help itself achieve decent growth.

Second, Pendle is bringing the trillion-dollar traditional financial interest derivatives market to DeFi. As a leader in this field, Pendle Finance has great advantages, can enter the multi-billion dollar TVL market, and will also occupy an important market share with the development of DeFi. Equilibria can also drive the DeFi industry forward with its innovative approach and commitment to generating high yields for its users.

In conclusion, Equilibria's vision is to drive innovation in the field. Its goal is not to simply create a "Convex" layer on top of Pendle, and some newer features will be introduced in the future, such as vlEQB's YT market, limit orders for PT/YT transactions, and cross-chain facilities. As mentioned earlier, the Equilibria team are senior experts in the DeFi field, have an in-depth understanding of the veToken model, and have successful experience in developing and operating veToken aggregators.

Stake DAO

In addition to Penpie and Equilibria, there is also a smaller participant in the Pendle ecosystem, Stake DAO. Compared with Penpie and Equilibria, Stake DAO is not a close relative of Pendle, but its share ranks behind the two, but it is also a Pendle token large vetoken participants. Of course, in addition to PENDLE, there are 45,741,301 CRV on Stake DAO, and the TVL is worth about $36,285,431. Next, I will give you a brief introduction to Stake DAO.

Similar to the above projects, Stake DAO is also a platform to increase Token revenue through the veToken model, and its highlight function is called Liquid Lockers.

Stake DAO Liquid Lockers allow users to unlock their power to lock Tokens (such as ANGLE, FXS, CRV) without sacrificing yield, voting rights, or liquidity. Through Liquid Lockers, anyone who provides assets can obtain the greatest increase in returns while retaining the full voting rights and interests of their Token native protocol, as well as the ability to increase voting rights, resell assets, and exit liquidity.

With Liquid Lockers, users can lock native Tokens in Liquid Locker and receive sdTOKEN in return. For example, users can lock their FXS through Liquid Lockers and receive sdFXS Token in return. For every FXS locked, Liquid Lockers will mint 1 sdFXS. This structure allows sdFXS holders to vote off-chain through Snapshot, and vote on the allocation of FXS indicators on Frax once a week. The underlying token is locked for four years on the native protocol (such as Frax) and permanently re-locked. This locking mechanism can generate the largest reward.

Conclusion

The veToken model has already had many successful cases. As the DeFi narrative becomes popular again, protocols that enhance DeFi revenue are already an important part of DeFi. As a strong participant in this field, Pendle’s three important protocols in its ecology may also become mainstream in the future , worthy of attention.