📰 Why Is DeFi Abandoning Subsidies? What Does Pendle’s Shift Mean?
Pendle, a veteran DeFi project, has finally come up with something new after nearly a year of quiet—shifting its liquidity pools toward real-world assets and pairing the move with a buyback. This could rewrite the way the entire DeFi sector grows: instead of relying on airdrop subsidies to attract users, projects may draw capital with the steady yields of the assets themselves. It’s a wake-up call for every DeFi project still counting on “giving money away” to stay afloat.
Why does this news matter?
The reason behind Pendle’s shift is simple: paying people to participate isn’t sustainable. They didn’t follow the crowd last year when the DeFi market was handing out subsidies like crazy. Now that subsidy costs are rising and users are growing tired of them, Pendle is proactively adapting to survive. In the industry cycle, this marks a transition from wild growth to more refined operations. How does it connect to other recent events? Aave and Compound, for example, are also discussing fee cuts. Pendle is the first to make a move.
Impact on the market
There’s no direct impact on BTC or ETH prices, but over the long term, this is a sign of a broader trend. In the short term, Pendle’s move may make speculative investors think, “DeFi is starting to get serious.” But if everyone makes a similar shift, the valuation logic for the entire DeFi sector will have to change. As for regulation, this is good news for regulators—why run a Ponzi scheme when you can let the assets speak for themselves? In terms of capital flows, it may divert some funds that only chase airdrops. A historical parallel? Well, it’s a little like how financial institutions began to focus more on risk management after Lehman Brothers collapsed in 2008, except this time the decision to give up subsidies is being made proactively.
💡 I think Pendle’s shift is likely to succeed, as long as the real-world assets it chooses are stable enough. This could become DeFi’s dominant model in the future. But there’s a caveat: if inflation rises again next year and interest rates keep climbing, while yields on real-world assets fail to beat typical DeFi yields, this strategy could be proven wrong.
This article was not sponsored by any project. The author does not hold any of the assets mentioned.
According to CryptoBriefing
⚠️ This is not investment advice
$BTC $ETH
Pendle, a veteran DeFi project, has finally come up with something new after nearly a year of quiet—shifting its liquidity pools toward real-world assets and pairing the move with a buyback. This could rewrite the way the entire DeFi sector grows: instead of relying on airdrop subsidies to attract users, projects may draw capital with the steady yields of the assets themselves. It’s a wake-up call for every DeFi project still counting on “giving money away” to stay afloat.
Why does this news matter?
The reason behind Pendle’s shift is simple: paying people to participate isn’t sustainable. They didn’t follow the crowd last year when the DeFi market was handing out subsidies like crazy. Now that subsidy costs are rising and users are growing tired of them, Pendle is proactively adapting to survive. In the industry cycle, this marks a transition from wild growth to more refined operations. How does it connect to other recent events? Aave and Compound, for example, are also discussing fee cuts. Pendle is the first to make a move.
Impact on the market
There’s no direct impact on BTC or ETH prices, but over the long term, this is a sign of a broader trend. In the short term, Pendle’s move may make speculative investors think, “DeFi is starting to get serious.” But if everyone makes a similar shift, the valuation logic for the entire DeFi sector will have to change. As for regulation, this is good news for regulators—why run a Ponzi scheme when you can let the assets speak for themselves? In terms of capital flows, it may divert some funds that only chase airdrops. A historical parallel? Well, it’s a little like how financial institutions began to focus more on risk management after Lehman Brothers collapsed in 2008, except this time the decision to give up subsidies is being made proactively.
💡 I think Pendle’s shift is likely to succeed, as long as the real-world assets it chooses are stable enough. This could become DeFi’s dominant model in the future. But there’s a caveat: if inflation rises again next year and interest rates keep climbing, while yields on real-world assets fail to beat typical DeFi yields, this strategy could be proven wrong.
This article was not sponsored by any project. The author does not hold any of the assets mentioned.
According to CryptoBriefing
⚠️ This is not investment advice
$BTC $ETH
