Go to the profile of  Brendon Lim
Brendon Lim
3 min read

Pendle now available on Coinhako

Pendle now available on Coinhako

We are thrilled to share that Pendle is now listed on Coinhako!

What is Pendle?

Pendle is an Ethereum protocol that creates a market for yields of yield-bearing tokens. It splits these tokens into principal and yield components, enabling trading via liquidity pools. This allows users to earn fixed yield, speculate on increasing yields (long yield), and provide liquidity for underlying tokens.

The PENDLE token serves as the utility token for the Pendle protocol. It enables governance through voting on protocol upgrades and settings. Additionally, PENDLE incentivizes ecosystem activities, fostering user engagement and protocol growth.

There is a total supply of 258,446,028 PENDLE and PENDLE has traded for US$7.52 at its peak. 

How does Pendle work?

Pendle tokenizes yield-bearing assets like stETH into principal (PT) and yield (YT) tokens tradable on Pendle's AMM. This enables users to employ advanced strategies like earning fixed yield, speculating on yield increases, or boosting yield through liquidity provision. It operates by separating ownership of an underlying yield-bearing asset from its future yield. Users deposit a yield-bearing asset and receive an ownership token representing the principal and yield tokens representing rights to future yields for a specified period. 

This dual-token system allows users to manage investment and risk by retaining yield tokens for potential returns or selling them for immediate liquidity. By creating a yield market, Pendle brings the $400T+ traditional interest derivatives market into DeFi, making it accessible to all.

The crucial elements of Pendle’s tokenomics are as follows:

  • The total supply of PENDLE is capped at 258,446,028 tokens, fostering scarcity. No additional tokens will be created once the maximum supply is reached, potentially increasing the token's value as demand grows.
  • Tokens are distributed among community incentives, team, advisors, investors, and user rewards to encourage protocol interaction and liquidity provision.
  • Users can stake their PENDLE tokens to earn yield, securing the network while increasing their holdings passively.
  • Token holders can propose and vote on protocol changes, including modifying staking rewards, token supply caps, and other parameters affecting functionality and token value.

Why does Pendle stand out?

Pendle's main use cases revolve around yield management and risk mitigation:

Yield Optimization: Investors can optimize income by trading future yields based on market outlook and risk appetite. 

Yield Volatility Hedging: Yield token sellers can lock in rates, protecting against decreases. 

Speculation: Traders can speculate on future yield value by buying/selling yield tokens to capitalize on price movements.

What can you do with Pendle on Coinhako?

Pendle will be available for users to trade across all swap pairs on Coinhako.

To gain access to any of these trading pairs, you can either:

  1. Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment method)
  2. Purchase Pendle instantly with Visa / Mastercard 

Please note that the sending and receiving of PENDLE will not be available for this release.

Risk Warning on Digital Payment Token Services

Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).

The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.

Before you pay your DPT service provider any money or DPT, you should be aware of the following.

  1. Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
  2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
  3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
  4. You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.

Visit: Coinhako.com/risk-disclosure for more information.