The Pendle ecosystem is about to迎来flywheel rise

After Pendle achieved a tenfold rise in both Total Value Locked (TVL) and token price, the flywheel growth of its ecosystem is about to kick off. As a token that adopts the ve-tokenomics model, Pendle currently lacks a project similar to Convex to fully realize its potential. Equilibria was born for this purpose, aiming to become an important part of the Pendle ecosystem.

vePendle holders can enjoy multiple rights, including deciding on incentive distribution, enhancing the yield of the PT/SY pool, receiving 3% YT interest income, and obtaining 80% of AMM trading fees. These rights are no less than those of benchmark projects currently on the market, demonstrating high value.

However, the two-year maximum lock-up period poses certain challenges for the liquidity of vePendle. The design of Equilibria is similar to that of a well-known project, which permanently locks vePendle and provides users with ePendle tokens to help enhance the AMM LP yields of Pendle, while sharing part of the enhanced returns with ePendle and vlEQB holders.

Pendle's recent rise is mainly attributed to two factors: first, the mechanism updates brought by the V2 version, and second, the emergence of LSD (Liquid Staking Derivatives) and derivatives as two sectors that can generate long-term returns, providing Pendle with a stable source of assets.

However, Pendle's potential in Bribe has yet to be fully tapped. Institutional players occupy a significant share in LSD, and these institutions have a strong demand for regular income. Theoretically, the LSD protocol has the space for Bribe in Pendle to meet these institutional needs.

Despite Pendle having been operational for two years, currently only 30 million out of 150 million circulating Pendle are locked, leaving room for early growth of Equilibria. Equilibria plans to launch activities in May, airdropping 2% of the total EQB tokens based on the amount of Pendle users deposit, which is expected to lock a large amount of Pendle that is still in circulation.

In addition, Pendle's tokenomics plan implements a perpetual 2% incentive inflation after the rapid inflation period ends in 2026, which means that vePendle/vlEQB holders have the opportunity to continuously benefit from bribery revenues.

Since ePendle and vlEQB are interest-generating assets themselves, theoretically, they can be combined with Pendle again to build their own YT/PT, achieving a fixed interest rate to better serve institutional clients while further promoting the development of the Pendle ecosystem and realizing the flywheel rise of the total locked value. Even after Equilibria opens this path, other ve-token packaging projects may also learn from and connect to the Pendle ecosystem, helping Pendle explore new markets.

In summary, Equilibria, as an important component of the Pendle ecosystem, will further unleash Pendle's potential, help achieve a rise in the flywheel, and promote the ecological development of the interest rate swap track.