Pendle Ripped in Early 2024, But Usage Has Slowed Down. Can It Recover? - Ep. 693
Episode publishedPodcast: UnchainedUnchained
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TN: What we have to focus on at the moment is how we can regain the market share because losing 1,000,000,000 of dollars in TVL in a short period of time, no matter how predictable it was, doesn't feel good.
Laura: Hi, everyone. Welcome to Unchained, a no hype resource for all things crypto. I'm your host, Laura Shin, author of The Crypto Viance. I started covering crypto 9 years ago, and as a senior editor at Forbes was the 1st to cover cryptocurrency full time. This is the August 23, 2024 episode of Unchained.
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Join over 3 100 speakers and 20,000 attendees. Visit token 2049.com for 15% off with code unchanged. Today's guest is Tian Li, the founder of Pendle Finance. Welcome, Tian.
TN: Yeah. Thanks for having me.
Laura: Pendle's been around since 2020, but it exploded earlier this year to a total value locked of almost $7,000,000,000. What is Pendle, and how did you come up with the idea for it?
TN: Pedal is a protocol for the tokenization and the trading of yield. Simply put, I think it allows for APYs to be traded to people with different themes. So some users, they want to speculate on the yield. Peddle is a band aid to do that. And then for some others who want to lock in their rates, they can be the counterpart to those who want to speculate on the yield.
As for the ideation of the concept, it started out in 2020. So basically, my cofounders and I, we were trading a lot of, shitcoins, the food coins back in December. And these food coins, they were not entirely different from the points that we were seeing today. They were printing tens and 20,000 percent of APYs. So as much as we like the idea of having high APYs, we weren't able to lock in the rates.
And that fundamentally motivated us to think about a solution or an instrument that allowed us to lock in the rates the way we wanted to. And also, I think just going deeper into the psychology of human beings, including ourselves, right? We innately crave for some form of certainty. So I think by and large, when we compare the state of crypto at the point in time to a matured financial sector, it was very obvious that an instrument that allows a fixed income was absent. So we thought the addressable market was big and then went about going with the design with of Handel.
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