Pendle Implied Yield

This could maybe be a new category? I did only this 1 market in case you don’t want to add implied yield data. There are a range of protocols that use implied yield so it could be a good dashboard for all sorts of users! Thanks, appreciate feedback.

This is super interesting, I don’t think I’ve got my head fully wrapped around it!

Is “implied yield” similar to the return offered by a bond?

Not sure if you’re familiar with Pendle and other fixed yield protocols but:
Pendle takes a yield bearing token and splits it into a YT and OT token. OT gets the ownership of the underlying yield bearing asset, YT gets the only the yield. For example, you could split aUSDC into OT-aUSDC-Dec22 and YT-aUSDC-Dec22. The OT token is redeemable for aUSDC at expiry (Dec '22) and the YT token gets all the loan interest until expiry.

In this calculation I focused on the YT, this implied yield is mainly a metric to gauge market sentiment on yields. But you can also calculate it based on the OT token - which is akin to the return offered on a bond. Arbitragers should make the YT implied yield close to the OT implied yield though.

From Pendle docs:
Implied yield is the annual yield on the underlying asset that the market is implying by the current price of YT. Implied yield allows for quick comparisons of the value of YT against the current yield of the underlying.

I think it could be a cool dashboard though because implied yield can be compared across fixed yield / yield trading protocols. There are quite a few of these now.

Very cool! I’m not familiar with Pendle, but I am familiar with Yield Protocol (I’m on their team :slight_smile:) and other fixed-rate protocols such as APWine, Element, HiFi and Notional.

Would probably be interesting to have a collection and a dash that compares all of these protocols! I’d be happy to work together on this :slight_smile:

One question: how do you think it would work to compare different series with different maturity dates? For example how would we compare a series that matures in April against one that matures in December?

I’m not sure. Best thing I can think of is to leave them as APYs

Ya APY is fine

Regarding your adapter, I think it should only call register once, and accept the “market address” as an input to give the APY.

The Yearn APY adapter could be a good example for how this could work:

Fab, I made an update in response to your feedback: