Pendle Finance
Aug 2, 2023
• 6
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Investment Thesis
Of all the financial instruments in TradFi, interest rate derivatives have arguably one of the largest total addressable markets. To illustrate, interest rate derivatives occupied over ~$500T in notional value in H2 ‘22, according to BIS. This market is generally supported by participants who want to speculate on or hedge yields on a myriad of asset classes, including foreign exchange, equities, commodities, and credit.
This class of instruments has been largely untapped in crypto until the arrival of Pendle Finance. So far, DeFi yields have embodied the form of floa...