Pendle PTs: DeFi's APY King There's just over a billion dollars of Principal Tokens outstanding on @pendle_fi right now, and roughly 42% of it has already been used as collateral and looped. Why? Because PTs are capital efficient fixed yield assets in DeFi and enhancing the yield by looping leaves major yield strategies out the dust. The achievements of having Pendle PTs in DeFi • $1.003B in PT outstanding • 760 active pools across 11 chains • 7.66% average fixed rate (TVL-weighted across the whole protocol) • 596 lending markets across 222 pools accept PT today • 2,518 active looped-PT holders; 13,000+ addresses have done atleast one • $259.1M in AMM liquidity, so the PTs stay liquid • 64.9% highest realised looping APY of the past ten days Why PT is the thing people loop: PTs are a fixed rate asset you agree to up front and converges to $1 on its expiry date making it capital efficient as a collateral due its nature converging to par ignoring AMM moves and implied-APY swings. This efficiency has been shown before through the worst USDe depeg last October, none of the existing USDe PT collateral during that time was liquidated on Aave. So looping a PT is different from looping a volatile asset. There, you're managing price risk while PTs you're managing the gap between your fixed rate and your borrow rate. Right now the average borrow cost across open loops is 5.30%. Any PT paying more than that loops profitably hence why its an attractive strategy Looping is now made easy in Pendle: Looping used to be this way: Buy the PT, deposit it on a lending market, borrow against it, swap the borrowed dollars back into more PT, repeat. Five or six transactions, each with its own gas, approvals, and some a mistake in transactions. Pendle's new PT Looping feature collapses all of that into a single transaction. The contract swaps your starting asset into the target PT, deposits it as collateral, borrows stablecoins against it, and swaps those back into more PT in one go. You can start from any asset you happen to be holding and the zapping feature are handled for you. It also unwinds the same way: one click to close. What opportunities are there right now Highest realised looping APYs of the past ten days: • PT-trUSD on Morpho: 64.9%, up to 9.7x leverage • PT-USD3 on Morpho: 50.7%, up to 6.6x • PT-earnAUSD on Euler: 38.2%, up to 9.6x • PT-strUSD on Morpho: 34.5%, up to 5.2x • PT-reUSD on Morpho: 26.3%, up to 7.2x • PT-USDG on Aave V4: 13.8%, up to 9.2x The numbers for looping PTs are yuge, making this one of the easiest way to make your money work for you. PT as collateral mitigates the risk but still consider the debt of the loop (borrow rate). Loop just got easier with Pendle's one-click dc: linn is a tier 1 kol supreme for pendle(🉐 Crypto Linn)