ENA maturing is the single biggest reason why lending protocols had their yields compressing across the board
While there are some high yielding stables on pendle why didnât TVL go back up? I suspect risk curators are studying their risk (or think they are too risky)
I was a bit shocked to see the Pendle TVL drop 50% from $13b to $6.5b, and immediately went to Tradingview to see if there was a "1001 days Turkey" episode. But no, it's due to the Plasma launch, and the unwinding of ENA/AAVE/Pendle loop.
Pendle will introduce Plasma on their platform this week. Expecting TVL to make a comeback.
At the moment I only hold $ENA out of these coins, been thinking about picking up Pendle too, but since 70% of their TVL is Ethena related, I am not sure. Maybe someone can bull-pill me.
Because of this, you would realize that pendle fees and revenue scales on asset quality, and how well they deliver value.
In a way betting on pendle is betting on tokenization. I think itâs worth being bullish on.
To be even more big picture, this exercise should remind you to think about the beta (not in a correlation sense more like factors) you are getting exposed to.
That being said from a valuation mechanism standpoint, it is not really a good thing to have revenue that is so sensitive to the quality of asset availability.
This is a product issue, but I think Pendle is capable of fixing it
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