Pendle Jumps 53.36% Today: What’s The Reason?

Today, Pendle jumped by 53.36% and is trading at $0.847. This was the highest cost in the last couple of months. Pendle Finance allows users to establish derivatives for sushi using their Liquidity Provider Tokens (SLP). Pendle made the news after successfully raising $3.5 million in April to introduce a new feature. SLP tokens are now split into two categories: ownership tokens (OT) and yield tokens (YT) (YT). Users can acquire access to LP positions without supplying their own liquidity by purchasing and holding these tokens, similar to how derivatives work in traditional finance. The underlying assets required to assure the liquidity of the LP position are Ownership Tokens (OT). As a result, users who own OT tokens are vulnerable to ongoing losses as a result of future market swings. Yield tokens (NOT), on the other hand, allow the user to receive the commissions created by the DZ position without the risk of IL.