Pendle ecosystem has three projects worth paying attention to.

With the rise of LSD narrative, Pendle Finance has performed exceptionally well among a group of projects in the LSD track, with its high-quality project design, team, and token economy. The PENDLE token price and TVL have skyrocketed, with the token price increasing nearly 16 times from the beginning of the year to now (0.05-0.8).

Just yesterday, Binance announced the launch of the new project Pendle Finance (PENDLE) on Launchpool. As a result, PENDLE broke through $1.7 within 5 minutes, reaching a peak increase of 76.83%. Pendle ecosystem may soon witness the PENDLE battle. Here are three projects in the Pendle ecosystem worth paying attention to, classified according to TVL ranking: Penpie, Equilibria, and Stake DAO.

Penpie

Penpie is a product launched by Magpie in collaboration with Pendle, aiming to provide income and veToken enhancement services to Pendle Finance users. Lock the PENDLE token to gain governance rights and higher yield in Pendle Finance.

The operation of Penpie allows PENDLE holders to earn high returns by converting their PENDLE into mPENDLE (Penpie version of the PENDLE token). Users can lock mPENDLE on Penpie and receive PENDLE earnings. When users convert PENDLE into mPENDLE, Penpie automatically locks the converted PENDLE as vePENDLE in Pendle Finance. This mechanism enables PENDLE holders to earn greater returns through mPENDLE while granting governance rights and higher APR to Penpie as an LP of Pendle Finance.

Penpie shares the voting rights accumulated by vePENDLE among vlPNP holders, enabling them to participate in Pendle Finance governance in a cost-effective manner. They can lock it as vlPNP to obtain their earnings.

Voting-locked PNP holders can earn income distributions from the platform and influence the governance of Pendle Finance, while maximizing their returns. Similar to viGMP, users must wait 60 days for vlPNP to fully unlock as PNP.

For more information about Magpie and Penpie, please refer to "Governance Yield Aggregator Magpie: Innovation Advantages and Gameplay."

Equilibria

The social media introduction of Equilibria states: "The first booster on Pendle, born for Pendle, takes yields to new heights," and Equilibria does indeed assume the role of "Convex" for Pendle. Further reading can be found in "Equilibria: Unleashing Pendle's Potential, Exploring the New Engine of Interest Rate Swaps."

Let's give a brief introduction to Equilibria. Equilibria platform is led by a DeFi OG team with years of industry experience, aiming to customize and optimize Pendle Finance to maximize the returns of PENDLE holders and liquidity providers. Equilibria utilizes the veToken/Boosted Yield model adopted by Pendle Finance to provide higher yields for LPs through the tokenized version ePENDLE of vePENDLE, as well as additional rewards for PENDLE holders.

Features of Equilibria

LPs on Pendle can increase their yields by depositing Pendle on the Equilibria platform, even if they don't hold any vePENDLE.

PENDLE holders can convert their PEDNLE on the Equilibria platform and receive ePENDLE (the liquid version of vePENDLE), while the original token is locked on the Pendle platform. In addition to gaining benefits related to PENDLE itself, ePENDLE holders can also stake to earn rewards and can exchange back to PENDLE on DEX.

Advantages of Equilibria

Firstly, there have been too many protocols proving that the veToken era has arrived (projects such as Curve/Convex and Balancer/Aura). The era of vePendle is also coming, and Equilibria is here to help Pendle grow and achieve good growth for itself.

Secondly, Pendle is bringing the trillion-dollar traditional finance interest derivative market into DeFi. As a leader in this field, Pendle Finance has a great advantage to enter the market with billions of dollars of TVL and will capture a significant market share as DeFi develops. Equilibria, with its innovative approach and promise to create high yields for users, can also drive the progress of the DeFi industry.

Finally, Equilibria's vision is to drive innovation in this field. Its goal is not just to create a "Convex" layer on Pendle, but will also introduce some new features in the future, such as the vlEQB YT market, limit orders for PT/YT trading, and cross-chain facilities. As mentioned earlier, the Equilibria team consists of experienced experts in the DeFi field, with a deep understanding of the veToken model and successful experience in developing and operating veToken aggregators.

Stake DAO

In addition to Penpie and Equilibria, the Pendle ecosystem also has a smaller participant, which is Stake DAO. Compared to Penpie and Equilibria, Stake DAO is not closely related to Pendle but holds a significant amount of vetoken after the two. Of course, besides PENDLE, Stake DAO also holds 45,741,301 CRV with a TVL value of approximately $36,285,431. Now let's briefly introduce Stake DAO.

Similar to the aforementioned project, Stake DAO is also a platform that enhances token yield through the veToken model. Its highlight feature is called Liquid Lockers.

Stake DAO Liquid Lockers allow users to unlock the power of their locked tokens (such as ANGLE, FXS, CRV) without sacrificing yield, voting rights, or liquidity. Through Liquid Lockers, anyone providing assets can achieve maximum yield enhancement while retaining full voting rights and benefits of their native protocol tokens, as well as the ability to increase voting power, resell assets, and exit liquidity.

With Liquid Lockers, users can lock their native tokens in the Liquid Locker and receive sdTOKEN as a reward. For example, users can lock their FXS in Liquid Lockers and receive sdFXS tokens as a reward. For each locked FXS, Liquid Lockers will mint 1 sdFXS. This architecture allows sdFXS holders to vote on the allocation of FXS metrics on Frax via Snapshot voting, which occurs once a week. The underlying tokens will be locked on the native protocol (e.g., Frax) for four years and permanently relocked, creating maximum rewards through this locking mechanism.

Conclusion

The veToken model has had many successful cases, and as the DeFi narrative heats up again, protocols that enhance DeFi yield have become an important part of DeFi. Pendle, as a strong participant in this field, its ecosystem's three important protocols may also become mainstream in the future and are worth paying attention to.