DeFi News: Pendle Ventures into Bitcoin Yield Pools for Enhanced Returns

Wednesday, 11 September 2024, 23:30

DeFi news highlights Pendle's expansion into Bitcoin yield pools, offering innovative strategies for BTC holders. This new initiative enhances opportunities within the DeFi ecosystem by facilitating BTC staking through unique collaborations and yield options.
Beincrypto
DeFi News: Pendle Ventures into Bitcoin Yield Pools for Enhanced Returns

DeFi News Overview

Pendle, a decentralized finance (DeFi) yield trading protocol, has made a significant leap by expanding into Bitcoin (BTC) yield options. This new development enables Bitcoin holders to explore unique yield strategies, broadening their options within the DeFi ecosystem.

BTC Staking Meets Flexibility: Pendle’s Multi-Phase Yield Strategy

The introduction of BTC pools is the first chapter in Pendle's multi-phase plan, known as the Bitcoin Arc. This initiative aims to increase BTC yield opportunities through collaborations with three DeFi powerhouses—Corn, Lombard Finance, and Babylon Labs. The partnership allows users to deposit Lombard’s liquid-staked BTC (LBTC) on Corn, a Layer 2 (L2) Ethereum protocol, and participate across the ecosystems of Lombard, Corn, and Babylon.

  • Corn Kernel multipliers provide additional incentives for users.
  • Lombard Points and Babylon Points enhance potential returns.

Yield Strategies Available for Bitcoin Holders

Pendle will offer Bitcoin holders two primary yield strategies through its BTC pools:

  1. PT-LBTC Option: This offers a fixed yield on BTC, allowing users to lock in stable, predictable returns.
  2. YT-LBTC Option: This provides leveraged exposure to Bitcoin yields with multipliers, up to 3x through Corn Kernel and Lombard Points.

This dual approach enables participants to choose between consistent returns and higher yield potential through calculated risks.

Preparing for Bitcoin's Growing Role in Decentralized Finance

Pendle's latest initiative aligns with the growing momentum of Bitcoin in DeFi (BTCFi). As Bitcoin's presence in DeFi expands, Pendle’s BTC yield pools position the platform to capitalize on this trend. Daniel Anthony, Pendle’s Head of Growth, noted that the rise of BTC staking was anticipated earlier this year, as venture capital began to flow into the space. Pendle prepared for this shift, ensuring its platform could accommodate Bitcoin assets.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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