Three Notable Projects in the Pendle Ecosystem

Author: Leo, BlockBeats

With the rise of the LSD narrative, Pendle Finance stands out among numerous projects in the LSD track due to its high-quality project design, team, and token economics. The price of PENDLE Token and TVL have both skyrocketed, with the token price increasing nearly 16 times from the beginning of the year (0.05-0.8).

Just yesterday, Binance announced the launch of the new Launchpool project Pendle Finance (PENDLE). As a result, PENDLE broke through $1.7 within 5 minutes, with an increase of up to 76.83%. The Pendle ecosystem may soon welcome the PENDLE battle. Here are three projects in the Pendle ecosystem worth noting, categorized by TVL ranking: Penpie, Equilibria, and Stake DAO.

Penpie

Penpie is a product launched in collaboration between Magpie and Pendle, aimed at providing yield and veToken enhancement services for Pendle Finance users. Lock PENDLE Tokens to gain governance rights and higher yield returns within Pendle Finance.

Penpie operates by allowing PENDLE holders to earn high yields by converting their PENDLE into mPENDLE (the Penpie version of the PENDLE token). Users can lock mPENDLE on Penpie and earn PENDLE rewards. When users convert PENDLE into mPENDLE, Penpie automatically locks the converted PENDLE as vePENDLE in Pendle Finance. This mechanism enables PENDLE holders to achieve greater returns through mPENDLE while also granting governance rights and higher APR as LPs in Pendle Finance.

Penpie shares the voting rights accumulated through its held vePENDLE among vlPNP holders, allowing them to participate in Pendle Finance governance in a cost-effective manner, which can be locked as vlPNP to obtain its rewards.

Voting-locked PNP holders can receive revenue sharing from the platform and influence Pendle Finance governance while maximizing their returns. Similar to viGMP, users must wait 60 days for vlPNP to fully unlock as PNP.

For more information about Magpie and Penpie, refer to "Governance Yield Aggregator Magpie's Innovative Advantages and Its Gameplay."

Equilibria

Equilibria's social media introduction clearly states: "The first yield booster on Pendle, born for Pendle, pushing yields to new heights," and Equilibria indeed plays the role of "Convex" for Pendle. For further reading, refer to "Equilibria: Unlocking Pendle's Potential, Exploring a New Engine in the Interest Rate Swap Track."

To briefly introduce Equilibria, the Equilibria platform is led by a DeFi OG team with years of industry experience, aiming to customize and optimize Pendle Finance to maximize yields for PENDLE holders and liquidity providers. Equilibria leverages the veToken/yield enhancement model adopted by Pendle Finance, providing higher yields for LPs through the tokenized version of vePENDLE, ePENDLE, and offering additional rewards for PENDLE holders.

Features of Equilibria

LPs on Pendle can deposit Pendle through the Equilibria platform to enhance their yields, even if they do not hold any vePENDLE.

PENDLE holders can convert their PENDLE on the Equilibria platform and receive ePENDLE (the liquid version of vePENDLE), with the original token locked on the Pendle platform. In addition to benefits associated with PENDLE itself, ePENDLE holders can stake for rewards and can exchange back to PENDLE on DEX.

Advantages of Equilibria

First, too many protocols have previously proven that the era of veToken has arrived (projects like Curve/Convex and Balancer/Aura). The era of vePendle will also come, and what Equilibria is doing is helping Pendle grow while achieving significant growth itself.

Second, Pendle is bringing the trillion-dollar traditional financial interest derivatives market into DeFi. As a leader in this field, Pendle Finance has a significant advantage in entering the multi-billion dollar TVL market and will occupy an important market share as DeFi develops. Equilibria, with its innovative approach and commitment to creating high yields for users, can also drive the DeFi industry forward.

Finally, Equilibria's vision is to promote innovation in the field. Its goal is not simply to create a "Convex" layer on Pendle; it will also introduce newer features in the future, such as the YT market for vlEQB, limit orders for PT/YT trading, and cross-chain facilities. As mentioned earlier, the Equilibria team consists of seasoned experts in the DeFi field, with in-depth knowledge of the veToken model and successful experience in developing and operating veToken aggregators.

Stake DAO

In addition to Penpie and Equilibria, another smaller participant in the Pendle ecosystem is Stake DAO. Compared to Penpie and Equilibria, Stake DAO is not a close relative of Pendle, ranking just behind them in terms of share, but it is also a significant participant in PENDLE token's veToken. Of course, besides PENDLE, Stake DAO also holds 45,741,301 CRV, with a TVL value of approximately $36,285,431. Next, let’s briefly introduce Stake DAO.

Similar to the aforementioned projects, Stake DAO is also a platform that increases token yields through the veToken model, with a standout feature called Liquid Lockers.

Stake DAO Liquid Lockers allow users to unlock their locked tokens (such as ANGLE, FXS, CRV) without sacrificing yield, voting rights, or liquidity. Through Liquid Lockers, anyone providing assets can achieve maximum yield enhancement while retaining full voting rights and benefits of their token's native protocol, as well as the ability to enhance voting power, resell assets, and exit liquidity.

Using Liquid Lockers, users can lock their native tokens in the Liquid Locker and receive sdTOKEN in return. For example, users can lock their FXS through Liquid Lockers and receive sdFXS tokens as a reward. For every 1 FXS locked, Liquid Lockers will mint 1 sdFXS, allowing sdFXS holders to vote off-chain via Snapshot once a week on the allocation of FXS metrics on Frax. The underlying tokens will be locked on the native protocol (e.g., Frax) for four years and will be permanently re-locked, creating maximum rewards.

Conclusion

The veToken model has many successful cases, and with the DeFi narrative once again booming, protocols that enhance DeFi yields have become an important part of DeFi. As a powerful participant in this field, Pendle and its three important protocols in the ecosystem may soon enter the mainstream and are worth paying attention to.