© 2026 Della Group. All Rights Reserved.
Okay, look. Every other Pendle guide out there starts with some fluffy explanation of "yield tokenization" like it's rocket science, then dumps a wall of jargon on you. But honestly? That's not how you learn this stuff. You wanna master Pendle, you need to jump in, mess around, and see what breaks. In my experience, people get stuck because they don't grasp that PT and YT are just two sides of your staked assets - like splitting a pizza so you can sell the cheese separate. Miss that, and you're lost.
The thing is, Pendle isn't about theory. It's a tool for turning your boring stETH or aUSDC into tradable bets on future yields. Why does this matter? 'Cause you can lock in 6% fixed when markets freak out, or bet big on yields spiking. Sound familiar? Yeah, that's the real power.
So, Pendle takes your yield bearing token - say, 100 stETH from Lido - and splits it into two. PT is the Principal Token. That's your original stake, redeemable at maturity for the full amount. YT? Yield Token. Grabs all the rewards, interest, points - everything extra - until expiry.
Picture this: You deposit 100 SY stETH (the wrapped version). Pendle mints 100 PT stETH and 100 YT stETH. But wait, it's adjusted for the current index. If SY stETH is worth 1.05 ETH each 'cause of accrued yield, you might get 105 PT and 105 YT. PT trades at a discount, like 0.95 ETH, 'cause buyers get the principal later. YT? Volatile as hell, drops to zero at maturity.
PT + YT always equals the full underlying. Sell YT to some yield chaser, keep PT for fixed gains. Or flip it - buy cheap PT, hold to maturity, pocket the difference. Pretty much turns DeFi into a casino for rates.
Pro move: Set gas to medium during low traffic. Saves you 30-50% without failing txns.
Now, the fun part. Head to the Markets tab. Pick a market, like USDe on Ethena with 3-month expiry.
What if it fails? Low balance or expiry too soon. Refresh app. In my experience, Arbitrum glitches less than Optimism.
Sometimes SY balance mismatches. Transfer SY manually to YT address before minting. Docs got the code snippet, but app's idiot proof now.
Okay, minted? Time to trade. Pendle's AMM pairs PT with SY, YTs via flash swaps. Single pool per market - efficient.
Buy PT cheap? You're locking fixed yield. Say PT USDC at 0.97 USDC, matures to 1.0. That's ~3% fixed if held. Sell YT if you think yields drop - pocket premium now.
YT play: Bet yields rise. Buy YT at 5.88% implied. If actual hits 9%, you profit big. But YT decays - time's your enemy. Use the calculator bottom right: Input maturity, amounts, see APY vs hold.
| Strategy | What You Do | Risk Level | Example APY |
|---|---|---|---|
| Fixed Yield (PT Buy) | Buy discounted PT, hold to maturity | Low | 6-8% locked |
| Yield Long (YT Buy) | Buy YT, collect variable yield | High | 9%+ if yields spike |
| Yield Short (Sell YT) | Mint and sell YT, keep PT | Medium | 5% premium upfront |
| Levered Hold | Borrow against PT, amplify | Very High | 15%+ potential |
See? PT's your safe bet. YT's the gamble. I usually mix - 70% PT, 30% YT for juice.
Markets crashing? Yields might tank. Buy PT now. Example: stETH market, PT at 0.94 ETH. Maturity in 100 days. Redeem for 1 ETH. That's fixed ~22% annualized if spot holds. (Math: (1-0.94)/ (100/365) ≈ 22%.)
Hold through. Or sell early if PT appreciates. Why does this beat just holding? No yield risk. Principal guaranteed at end.
But watch expiry. Post maturity, PT redeems 1:1 SY, then unwrap. YT worthless - don't hold those.
In my experience, long YT shines in bull markets - Ethena points were insane last year. Short? Bearish on rates, like now with Fed cuts.
Potential issue: Impermanent loss in AMM. Mitigate by providing liquidity only if deep in market.
YT holders get interest in SY (swap via router) + rewards like points or tokens. Call redeemDueInterestAndRewards - true for both.
PT holders? No auto claims, but maturity redemption includes principal growth. Pro tip: Batch claims weekly to cut gas.
Strategy 1: Fixed Farm. Deposit aUSDC, mint PT/YT, sell YT. Hold PT. Earn fixed + whatever PT premium. Last run: 7.2% over 6 months.
Strategy 2: YT Leverage. Borrow USDC on Aave, buy YT stETH. If yield > borrow rate (say 5% vs 4%), free money. But liquidation risk - keep LTV under 60%.
Strategy 3: Points Farmer. YT on Ethena USDe. Collect sUSDe + points. Trade points later. Made 2x on ENA airdrop.
What's next? Check Markets for high volume - over $10M TVL safest.
Bottom right tool. Set principal + yield to 10k USDC. Pick maturity. Compares hold APY vs PT fixed vs YT levered. Tells if YT's "cheap" - buy if effective APY >10%.
Smart contract bugs? Pendle's audited, but DeFi's wild. Use small sizes first. Yield volatility - YT tanks if rates crash. Maturity cliff - YT to zero.
Gas spikes? Wait for L2. Migration needed? App notifies - swap to new markets. In my experience, biggest killer's FOMO buying overpriced YT.
Negative yield? Possible, like if underlying drops. PT redeems less - example: Mint at index 1.20, mature at 1.15, you get 115 USDe on 120 PT claim. Ouch.
Top ones: Ethena USDe (stable, points), Lido stETH (ETH exposure), Aave aUSDC (fixed ish). Volumes $50M+ daily. Avoid low liq - slippage kills.
Vary by chain: Arbitrum for cheap, mainnet for big boys. I rotate weekly.
Gas total ~0.002 ETH round trip. Don't forget claims first!
Honestly, start with $1k test. Scale when comfy. You'll master it quick.
Last thing: Pendle's evolved - v2 AMM crushes v1. Check app for new markets like BTC yields. Experiment. That's how pros level up.
© 2026 Della Group. All Rights Reserved.