Today, we're excited to announce a significant integration on FiRM: PT-sUSDe from Ethena Labs and Pendle Finance.
First some background:
About Pendle
Pendle is a permissionless yield-trading protocol where users can execute various yield-management strategies. Pendle allows users to wrap yield-bearing tokens into SY(standardized yield tokens), which is a wrapped version of the underlying yield-bearing token that is compatible with the Pendle AMM (e.g. stETH → SY-stETH). SY is then split into its principal and yield components, PT (principal token) and YT (yield token) respectively, this process is termed as yield-tokenization, where the yield is tokenized into a separate token. Both PT and YT can be traded via Pendle’s AMM. If you're new to how Pendle works, check out their explainer video
or dive into their docs or more detailed information.About Ethena
Our existing sUSDe market on FiRM, announced last month, has been our top performing non-INV collateral market. In addition to relatively high yields on sUSDe, Ethena offers points, or “sats” to sUSDe holders including when staking on FIRM.
PT-sUSDe on Pendle
Pendle offers multiple opportunities to deposit sUSDe in order to split sUSDe’s yield from its principal, all with Our first asset from Pendle is the PT-sUSDe-27MAR25 market.
There are two basic options for taking advantage of this new market on FiRM.
Option A: Leverage with sUSDe Yield and Ethena Sats
Mint PT-sUSDe-27MAR25: Begin by minting the Principal Tokens (PT) for sUSDe with a maturity date in March 2025. This step also provides you with Yield Tokens (YT).
Use PT as Collateral: Deposit your PT-sUSDe on FiRM where you can leverage up to 87% of its value due to the max Loan-to-Value (LTV) ratio.
Borrow $DOLA: With your PTs as collateral, borrow $DOLA at a fixed rate of 8% on FIRM https://www.inverse.finance/firm/PT-sUSDe-27MAR25
Loop for More: You can then use the borrowed $DOLA to mint more PT-sUSDe and YT, looping this process to increase your exposure and potential yield.
Keep the Yield Token: Retain your YT, which not only benefits from the yield but also comes with a 30x sats multiplier from Ethena Labs, enhancing your rewards.
Option B: Leverage for Fixed Yield
For those interested in a more straightforward approach:
Hold PT-sUSDe-MAR272025: Purchase or mint PT for a fixed yield. Currently, this yield stands at around 14.13%.
Use PT as Collateral on FiRM: Just like in Option A, leverage your PT up to 87% of its value.
Borrow $DOLA: Borrow against your collateral at that 8% fixed rate.
Multiply Your Collateral: Loop this by using borrowed $DOLA to acquire more PT, potentially reaching up to 7.69x leverage, which could yield an effective current APY of approximately 54.79% after accounting for borrowing costs.
The beauty of using PTs here is they function akin to zero-coupon bonds. They're designed to reach $1 at maturity, but on FiRM, their price feed for collateral purposes is perpetually set at $1. This allows for high capital efficiency without the volatility risk typically associated with crypto assets.
Safety and Education
DYOR: Always do your own research. Understand the risks involved with DeFi, especially with leverage. This is yield farming 2.0, where safety meets high yield. Leverage up, but always with caution.
NFA: This is not financial advice. Engage with DeFi at your own risk.
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