Pendle support is now live at DeFi Saver

Alex -

With Aave onboarding their first Pendle pTokens as collateral, we’re excited to share that we now (finally) have support for one of the most innovative yield-trading projects in the DeFi space (and yes, that includes leverage management - read on for full details).

What is Pendle?

Pendle, launched in 2020, is a DeFi protocol that set out to bring the concept of interest rate derivatives to DeFi. So far, it has proven its resilience through various market cycles, due to enabling predictable returns, enhanced yield exposure, and the ability to stack yields. With Pendle, users generally have more control and flexibility over their yield-bearing assets.

At the heart of Pendle’s mechanism is yield tokenization. It separates the principal (PT) and yield components (YT) of yield-bearing assets, allowing users to either lock in fixed returns or trade the future yield. This creates a dynamic where users can sell their yield upfront for guaranteed income, while buyers speculate on potential yield increases. In simple terms, sellers get fixed returns, and buyers take on the risk in pursuit of greater rewards.

Most recently, Pendle tokens have made their way to Aave v3, with PT sUSDe and PT eUSDe now available (to be used as collateral). This milestone not only reflects Pendle’s growing credibility and utility in the DeFi space but also enhances the range of yield strategies available.

What can you do with pTokens in DeFi Saver?

With pToken now officially supported on Aave v3, it was high time for us to integrate Pendle support into DeFi Saver, so you can fully utilize pTokens within the same interface you’re familiar with.

Here’s what you can now do with pTokens at DeFi Saver:

  • If you want to lock the yield on your sUDSe or eUSDe, but currently do not own PT-sUSDe or PT-eUSDe tokens, you can first acquire them by visiting our Exchange page.
  • If you already own PT-sUSDe or PT-eUSDe, or both, you can increase and optimize your profit by leveraging your position. You can do this by going to the Aave create page and leveraging your position. It’s important to note that, for now, you can leverage PT tokens only against USDC, USDS, and USDT as debt. 

With DeFi Saver, you can leverage your position up to 10 times, and practically skip 15-30 steps of unnecessary manually executed transactions.

And probably worth noting: all actions with Pendle pTokens currently have 0% service fees.

An illustration of what happens within a pToken Boost transaction at DFS.

Also, bear in mind that the current tokens available on Aave (and consequently on DFS as well) are PT eUSDe May and PT sUSDe July, and that's specifically only on the Ethereum mainnet instance of Aave v3.

For any additional questions or help regarding pTokens, constructive feedback, or a simple chat, hit us up in our Discord server.

See you there! 🛟