A must-see for Pendle YT investment! Deciphering the true return rate of leverage points

This site (120BtC.coM): Current airdrops for new projects mostly depend on the user’s points, and Pendle, an interest rate trading protocol that allows users to leverage points, has become the focus of the market. Since the beginning of the year, $PENDLE has soared by more than 424%. , its TVL has exceeded US$5 billion, an increase of nearly 22 times compared with US$230 million at the beginning of the year.

On the 22nd, Pendle opened a new ezETH fund pool (the liquidity token of the liquidity re-pledge protocol Renzo) on the Ethereum and BNB chains, which provides users with the opportunity to earn 3x points. .

However, considering the risk that the value of holding YT tokens will return to zero until the expiration date, investors may worry that the proceeds from future airdrops may not be enough to offset the cost of purchasing YT. Therefore, this article will provide a detailed return calculation to analyze the potential return of investing in YT-ezETH and holding it until maturity, for investors’ reference and to enhance their confidence. This article will also share an Excel spreadsheet for interested readers to operate.

Step 1. Calculate the points that can be earned from YT every day

First, in the "?x on Pendle" field in Figure 1: we must first fill in the points currently provided by Pendle The multiplier is currently 3 times so enter 3. Then fill in the current price of ETH in "ETH Price", which is the cost of entering the market now.

Figure 1

In the "Putting 1 ETH into YT" field: You need to enter the Pendle website, select ETH in the Input field and enter 1 , that is, you can see that it can be exchanged for 6.9582 YTezETH. This means that participants can earn 6.9582 YT ezETH points with 1 ETH. This is exactly what Pendle means by allowing users to leverage points.

"Points per ETH per day" field: You need to check the official document for the method of calculating points. You can see that without considering any incentives, you can get 1 point per hour for every ETH you deposit. , you can get 24 points in one day, and Pendle provides a 3x bonus, so fill in 72 (the Excel table formula has been filled in).

"Points earned per day from YT": This represents how many points a participant can earn for each ETH they hold. In summary, 6.9582 times 72 equals 500.99 (the Excel table formula has been filled in) .

Figure 2

Step 3. Reveal the rate of return on investment

"FDV$": FDV is hypothetical data, which can be found in the currency An got more firm data after listing $REZ on the 30th. Currently, he makes a conservative estimate based on the $3.885 billion FDV of $ETHFI, the only liquidity re-pledge agreement that issues currency, assuming it is $2.5 billion.

「Airdrop allocated%」: According to Renzo’s token economy, airdrops will account for 10% of the total supply, and the first airdrop will issue 5%, so it is estimated that the remaining 5% of airdrops will be distributed this year The distribution is completed.

「Total airdrop$」: The total airdrop value at this time is FDV’s US$2.5 billion multiplied by 5% of the airdrop allocation, which is equal to US$125 million (the Excel table formula has been filled in).

「My Return in$」: The reward is the total airdrop value multiplied by 0.002% points ratio, which is equal to US$2,799 (the Excel table formula has been filled in).

"Return%", "APY%": The return rate is US$2,799. Compared with the current cost of entering the market to purchase ETH, it is equal to -13.85%, and the annualized return rate is -20.64%. It seems... investment YT still needs to think carefully.

Figure 3

Step 4. Adjust FDV to calculate the corresponding return rate

Finally, check the return on investment at each level of FDV , it can be observed that after US$3 billion, the rate of return can turn positive. This part of the Excel table formula has been filled in.

An Excel spreadsheet is also provided here, and interested readers can operate freely after copying it.

Figure 4

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