⚠️ One of the strongest Q3 reports out there, yet the market voted -3%.
Pendle released its Q3 figures today: TVL of $1.16 billion, up 43% quarter over quarter—the first quarterly increase in over a year; RWA accounts for 82% of TVL; incentives were cut in half, yet revenue per unit of TVL rose 76%; and the standout figure—buybacks were 3.2 times token issuance (versus just 1.6 times in Q2).
The model is essentially “living off the rent”: 80% of retained fees go toward buybacks, so growth no longer relies on token-emission subsidies. But keep the risks in view: by December 17, around 91% of TVL ($1.06 billion) is due to mature. Whether users roll over their positions will be the real test. V2 trading revenue has already fallen to $2 million, and if fees shrink, buybacks will shrink too.
What to watch: whether the Q4 buyback ratio holds above 3x, whether PT collateral (currently $497 million) continues to double, and the rollover rate during December’s maturity wave.
Disclaimer: These are personal observations only and do not constitute investment advice.
Would you treat these strong numbers as a reason to start watching from the left side, or wait until after December’s maturity wave?
$PENDLE #RWA #DeFi #BinanceSquare
Pendle released its Q3 figures today: TVL of $1.16 billion, up 43% quarter over quarter—the first quarterly increase in over a year; RWA accounts for 82% of TVL; incentives were cut in half, yet revenue per unit of TVL rose 76%; and the standout figure—buybacks were 3.2 times token issuance (versus just 1.6 times in Q2).
The model is essentially “living off the rent”: 80% of retained fees go toward buybacks, so growth no longer relies on token-emission subsidies. But keep the risks in view: by December 17, around 91% of TVL ($1.06 billion) is due to mature. Whether users roll over their positions will be the real test. V2 trading revenue has already fallen to $2 million, and if fees shrink, buybacks will shrink too.
What to watch: whether the Q4 buyback ratio holds above 3x, whether PT collateral (currently $497 million) continues to double, and the rollover rate during December’s maturity wave.
Disclaimer: These are personal observations only and do not constitute investment advice.
Would you treat these strong numbers as a reason to start watching from the left side, or wait until after December’s maturity wave?
$PENDLE #RWA #DeFi #BinanceSquare
