Pendle reposted this
In part 1 of our Pendle LP Performance study, it was concluded that Liquidity providers (LPs) on Pendle: - outperform vs non-LPs (merely holding the underlying asset) - experience no impermanent loss (IL) - longer time frame LPs results in more outperformance In part 2, we further studied the performance vs yield-bearing assets in DeFi i.e. stETH, GLP and gDAI. Conclusion? No change in findings: - Pendle LPs generally outperform non-Pendle users, even when excluding PENDLE incentives - In the worst case, IL was observed to be 0.85% only - When including PENDLE incentives, there was zero IL in the stETH and gDAI pools - The performance of an LP using Zero Price Impact Mode vs. without depends on the Underlying and Implied APY of the pool. Regardless, Pendle LPs still generally outperform non-Pendle users Check out part 2 of our in-depth study in the report below: https://lnkd.in/gCreNMW8