Pendle — Base Use Cases & Strategies
With the rapid development in DeFi, numerous yield-generating assets have been created. Pendle looks to create the next layer of DeFi on top of these assets, allowing for the tokenization of yield, such that users can trade and hedge based on their risk appetites.
We’ve recently released an introductory piece here which we recommend reading if you’re a newcomer to the Pendle ecosystem!
If yield is speculated to increase, traders can act on this and purchase XYT to gain yield exposure. Traders who are long XYT benefit when yield increases.