A picture is worth a thousand words! The diagram vividly explains, how does Pendle work? How to make money with Pendle? What is the logic? It is obvious that it is a game of interest rate ups and downs, and it can also be found that it is very consistent with the logic of trading! In the future CEX/DEX, there must be a new sector of interest rates, and with Pendle's current absolute leader position in the Web3 interest rate derivatives track, there will be a place for Pendle in the future! Moreover, in the field of traditional finance, the interest rate derivatives track in which Pendle is located is already very mature. The last time I thought that interest rate trading would lead to a new exchange product, I didn't know that Pendle was already planning to launch a DEX-like product: Boros. Once formed, it will be the head product that takes advantage of Pendle's existing strengths (and even if Boros doesn't succeed in the end, the rest of the products will need to be supplemented by the infrastructure provided by Pendle). However, I am looking forward to more, that is, in the future, the PT/YT tokens split by Pendle can be directly listed on CEX, connecting on-chain and off-chain, forming a new DeFi + CeFi + DEX + CEX TradFi. Unlike hedging or stablecoin mining, which I have been taking during this time, I have changed a lot of DeFi positions to $PENDLE, and I bet he can do it! ______________________ The core goal of Pendle is to achieve principal and interest segregation, which normalizes these interest-bearing tokens by wrapping yield-generating assets into SY tokens. The SY token can then be split into two parts: the principal token PT and the yield token YT. Through Pendle's Automated Market Maker (AMM) mechanism, users can easily trade these tokens and realize the game of interest rates. The principal token PT is like a stable investment tool that can help users resist market fluctuations and lock in fixed returns. The price of PT tokens is usually lower than the price of the original asset, and this difference is the fixed income that users can receive. Users who buy PT tokens are usually people who are cautious about future earnings and want to lock in current yields through PT. YT, a yield token, is a leveraged instrument full of opportunities and risks. Users do not need to invest a large amount of money to buy complete interest-bearing assets, they only need to hold YT to enjoy the right to income generated by the principal. If future earnings decline, users may face losses; But if the revenue goes up, the user will get a higher return. Therefore, users can flexibly choose to increase or decrease their holdings of YT tokens according to their predictions of future yields to seize market opportunities.