Pendle@pendle_fi
Lots of people are wondering how it's possible for @apyx_fi PT-apyUSD to pay ~16% Fixed APY, more than @saylor's STRC dividend rate of 11.5%.
ELI5 👇🏻
> apxUSD is backed by STRC and SATA, but dividends only flow to apyUSD
> apyUSD = staked apxUSD
> As long as <100% of apxUSD is staked, apyUSD earns a disproportionately larger share of dividends
The Pendle story:
> Pendle is a yield tokenization protocol, similar to bond stripping
> apyUSD's yield is stripped so it can be traded separately
> The principal portion becomes PT, essentially a zero coupon bond
> But don't forget - apyUSD comes with APYX points too, representing their impending airdrop
> Disproportionate dividends + airdrop upside, both priced in
This is why PT-apyUSD is 16% Fixed APY 👍🏻
TL;DR PT-apyUSD earns more than STRC because it concentrates dividends across fewer stakers. Pendle then lets you lock that rate in at a fixed return.