TL;DR
- Pendle’s Expansion: Pendle, a DeFi protocol, has launched Bitcoin yield pools, allowing BTC holders to explore new yield strategies and broaden their options within the DeFi ecosystem.
- Strategic Partnerships: The expansion is part of a multi-phase plan called the Bitcoin Arc, involving collaborations with Corn, Lombard Finance, and Babylon Labs to enhance BTC yield opportunities.
- Yield Strategies: Pendle offers two main yield strategies for BTC holders: PT-LBTC for fixed, stable returns, and YT-LBTC for leveraged exposure to higher yields.
Pendle, a decentralized finance (DeFi) protocol focused on yield trading, has taken a major step forward by venturing into Bitcoin (BTC) yield options. This new development enables Bitcoin holders to explore unique yield strategies, broadening their choices within the DeFi ecosystem.
With Pendle in the mix, we'll be unlocking new yield opportunities for BTC.
🌽 PT-LBTC: BTC Fixed Yield
🌽 YT-LBTC: Leveraged exposure to the 𝒉𝒊𝒈𝒉𝒆𝒔𝒕 multipliers for Corn Kernel (3x) + Lombard Points (3x), as well as Babylon Points (1x) when available pic.twitter.com/ZEnRkFAWym
— Pendle (@pendle_fi) September 11, 2024
Pendle’s Strategic Partnerships and Multi-Phase Plan
Pendle’s expansion into Bitcoin yield pools is part of a broader strategy known as the Bitcoin Arc. This multi-phase plan aims to increase BTC yield opportunities through collaborations with three DeFi powerhouses—Corn, Lombard Finance, and Babylon Labs.
These partnerships allow users to deposit Lombard’s liquid-staked BTC (LBTC) on Corn, a Layer 2 Ethereum protocol, and participate across the ecosystems of Lombard, Corn, and Babylon. This interconnected yield ecosystem offers benefits from Corn Kernel multipliers, Lombard Points, and Babylon Points.
Yield Strategies for Bitcoin Holders
Pendle offers Bitcoin holders two primary yield strategies through its BTC pools. The PT-LBTC option provides a fixed yield on BTC, allowing users to lock in stable, predictable returns. This strategy is ideal for those seeking to avoid the risks of yield volatility and instead opt for consistent, guaranteed returns.
On the other hand, the YT-LBTC option offers leveraged exposure to Bitcoin yields. Users can leverage multipliers—reaching as high as 3x through Corn Kernel and Lombard Points—while utilizing Babylon Points to boost their yield potential. This strategy is designed for individuals eager to optimize their returns by embracing calculated risks and pursuing greater yields.
High Yields and Market Impact
Pendle’s new pools offer floating yields as high as 45% and fixed yields of 10% on a Bitcoin-based token. The returns are generated by staking Lombard’s LBTC token in partnership with the Ethereum layer-2 network, Corn. Since its launch, the pool has garnered more than $13 million in user deposits.
Preparing for Bitcoin’s Growing Role in DeFi
Pendle’s newest initiative is perfectly timed with the rising influence of Bitcoin in the DeFi space (BTCFi). As Bitcoin continues to gain traction in decentralized finance, Pendle’s BTC yield pools are strategically set to take advantage of this burgeoning trend.
Daniel Anthony, the Head of Growth at Pendle, shared that the integration of Bitcoin yield options is part of a larger strategy aimed at responding to significant advancements in the DeFi landscape.
At present, Pendle holds the top position as the largest yield protocol by total value locked (TVL). According to DefiLlama data, its TVL stands at $2.63 billion.
Pendle’s BTC yield pools represent a significant step forward in the DeFi space, offering Bitcoin holders new opportunities to earn high yields while participating in a comprehensive and interconnected yield ecosystem.
