To write an authentic article about SPARK, I decided to purchase my first YT from PENDLE.
I tend to be a conservative investor, so I usually prefer not to engage in high-risk strategies like YT, which can lead to principal loss. However, as a PENDLE ambassador, I wanted to create genuine content about @sparkdotfi, so I invested a small amount of funds.
Certainly, due to the nature of YT, even buying around $500 can yield points close to $40,000, which is quite enticing.
YT is a yield token that allows you to pre-purchase the interest or points you can earn at maturity for depositing specific assets. In other words, if the interest at maturity is higher than the principal I purchased, I will gain more than that, but if not, I will incur a loss.
On the other hand, PT is about receiving the original asset deposited at maturity, and typically, the value of PT is the original asset minus YT. Thus, those who seek stable profits or need to increase the quantity of a specific asset will choose PT.
Specific assets deposited in a certain DeFi (1) are divided into YT + PT, where YT means that the principal you invested disappears at maturity, and you only take the interest. PT means you receive the value equivalent to the principal you invested at maturity.
So, if you are bearish on a specific DeFi protocol, you should buy YT, and if the bearish sentiment intensifies, causing the price of YT to rise significantly while the price of PT drops, conservative whales will seize that opportunity to buy PT and increase their asset quantity at maturity.
🔍 I bought YT of SPARK in Pendle yield Market
In fact, I tend to be a conservative investor, so I usually don’t use aggressive strategies like YT. However, this time I decided to try out the YT product because I was curious about the SPARK results. I invested around $500, and my YT position effectively gave me the exposure of having deposited $44500. While the principal I used to purchase the YT is gone in the end, in return instead, I am able to accumulate a significant amount of points for SPK points.
As the biggest onchain capital allocator & deep friendship with pendle, Spark can give the best scenario of pendle intern's calculation.
So let's see. I want to open the box of my first YT.
52
13.79K
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.