Here's why you should be using the Zero Price Impact mode on Pendle ⚡
As its name suggests, the Zero Price Impact mode lets you to provide liquidity to Pendle pools without affecting the price.
Which also means a much more efficient use of your capital!
As its name suggests, the Zero Price Impact mode lets you to provide liquidity to Pendle pools without affecting the price.
Which also means a much more efficient use of your capital!
Normally, when liquidity is added on Pendle, a portion of the underlying asset is used to purchase PT from the PT/SY Pendle pool, and the rest is wrapped into SY.
This PT swap causes a price impact.
This PT swap causes a price impact.
With Zero Price Impact Mode, the underlying asset is fully wrapped into SY, a portion of which is used to mint PT and YT.
The PT and remaining SY are then used for liquidity provision, with the YT returned to the user's wallet.
The PT and remaining SY are then used for liquidity provision, with the YT returned to the user's wallet.
Without the step of purchasing PT, any potential price impact is thereby eliminated.
However, you will be exposed to price impact if the initial input assets are needed to be swapped into underlying tokens.
However, you will be exposed to price impact if the initial input assets are needed to be swapped into underlying tokens.
Now let's see how this looks like in live action.
Without Zero Price Impact Mode (left), there's a price impact of 0.914% when you provide liquidity to the pool, which can cause you to receive less tokens than expected based on your input amount.
Without Zero Price Impact Mode (left), there's a price impact of 0.914% when you provide liquidity to the pool, which can cause you to receive less tokens than expected based on your input amount.
On the right with Zero Price Impact Mode, all of your capital is fully utilized and in return, you'll get a combination of LP tokens and YT.
This also means that there's an additional need to monitor and manage your YT position.
This also means that there's an additional need to monitor and manage your YT position.
With Shanghai just around the corner and #LSDfi heating up, you can fully utilize the Zero Price Impact Mode to make the most out of your LSDs.
Pendle offers some of the highest, most consistent APYs in high liquidity pools, up to 69% boosted APY in the $ankrETH pool
Pendle offers some of the highest, most consistent APYs in high liquidity pools, up to 69% boosted APY in the $ankrETH pool
"And what exactly do I do with my YT then?"
Perhaps this ELI5 guide can help you get started on your yield-trading journey
Perhaps this ELI5 guide can help you get started on your yield-trading journey
Zero Price Impact Mode - try it out on Pendle today!
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