How to Use Pendle
Pendle lets you trade and manage yield. Split yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT) for advanced strategies.
Key Concepts
PT (Principal Token):- Redeems for underlying at maturity
- Trade at discount = fixed yield
- Lower risk
- Receives all yield until maturity
- Leveraged yield exposure
- Higher risk/reward
Strategy Examples
| Strategy | Risk | Return |
|---|---|---|
| . . . . . | . . . | . . . . |
| Buy PT | Low | Fixed 5-20% |
| Buy YT | High | Variable, can 10x |
| LP | Medium | Trading fees + rewards |
. -
Track your Pendle positions with Fensory. Monitor yields and expiries.[Start Tracking →](https://www.fensory.com)
Step-by-Step Instructions
1
Get Yield-Bearing Token
Acquire stETH, GLP, or other yield-bearing assets.
Tips
- ✓Check Pendle for supported assets
2
Go to Pendle
Visit app.pendle.finance and connect wallet.
Warnings
- ⚠Verify URL carefully
3
Choose Strategy
Buy PT for fixed yield or YT for leveraged yield exposure.
Tips
- ✓PT is simpler for beginners
4
Execute Trade
Select amount and execute. For PT, check implied APY vs maturity.
Tips
- ✓Longer maturity = higher potential yield
5
Hold Until Maturity
PT holders: redeem at maturity for full principal. YT: collect yield during term.
Tips
- ✓Can exit early but may affect returns
6
Redeem at Maturity
After maturity, redeem PT for underlying asset.
Tips
- ✓PT becomes redeemable 1:1