1/TiD Strategies has taken a small position in USDS Yield Token (YT) on Pendle — a points farming play on the upcoming Spark token.
Here’s the thesis 👇
2/
Spark has $7.2B in TVL, ranking as the #4 largest DeFi protocol (June 2025).
It integrates with @Aave and @MorphoLabs and manages $1.5B in active loans.
Notably, Spark is the only $1B+ protocol without a token—but its Spark Points (SP) program may change that.
3/
Pendle’s YT-USDS earns no fixed yield, but accumulates Spark Points (SP), which may convert to tokens at TGE.
🗓️ If TGE happens around Aug 14, 2025 (YT expiry)
🎯 And if ~1% of airdrop goes to Pendle LPs...
There may be convex exposure to a DeFi unicorn.
3/ While the YT is built on top of the USDS stablecoin, Spark itself is more of a lending protocol,
so it might also make sense to apply the TVL/FDV valuation multiple of other lending protocols.
5/Why assume 1% airdrop to Pendle YT/LPs?
Spark’s been farming points to depositors/lenders for 2 years.
If they only get 4–5%, Pendle users likely get less. So we assume a conservative 1% slice for this strategy.
6/ 🧠 Risks to watch:
– TGE delayed past Aug
– Pendle YT/LP share of points lower than expected
– Points farming activity dilutes your yield
– Market downturn compresses FDV
– Spark token underperforms vs comps
7/ We took a small starter position (<1% of desk AUM).
For more analysis like this which led to this trade consider subscribing to TID Premium, our actionable paid research:
8/🛡️ Disclosure
TiD Strategies is our internal desk. We deploy only our own capital.
This thread is for transparency and discussion — not investment advice.
📊 Positions & disclosures:
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