The driving factor in big RoIs on YTs is understanding your edge. With @capmoney_’s YT-cUSD, this means understanding: 👉 Double point efficiency (exclusive to Pendle) 👉 33x leverage Sound like a print? I’ll let you decide.

Before jumping into calculations, here are potential RoIs at various FDVs. These are PRETTY conservative numbers given Cap has: 📌 Raised $11m from @FTI_Global, @Nomura et al 📌 ~$250m stable supply I present 3 cases: 🐻 Bear Case 🎪 Base Case 🐮 Cow (read: bull) Case

$1k starting capital gives us $32.8k worth of cUSD exposure... ...but since 1 YT-cUSD earns TWICE as many points as cUSD... ...$1k in YT-cUSD is equivalent to $65.4k in cUSD 👀 TL;DR No better way to get Cap'd up

Before jumping into my $CAP valuation, intern has taken a look at the FDV:TVL ratio of various yield-bearing stablecoins. This ghetto analysis has found ratios ranging between ~23-105% FDV:TVL. I'll be using 33%/66%/100% FDV:TVL to project potential $CAP FDVs.

I then combine the assumed 33%/66%/100% with a peak $750m TVL (vs. current ~$248m TVL) From this, we get an implied $/point to push out the rest of his numbers! Points are intentionally projected higher than actual rates to make numbers more conservative 🤫

Putting this all together, YT-cUSD offers an interesting R/R profile ASSUMING FDV:TVL ratios we see in related stablecoin protocols hold. Indeed, if $CAP can maintain a dominant ratio, the potential 🪂 could be VERY attractive indeed.

Value flow to stablecoin protocols come down to the problems they are trying to solve. If Cap can solve uncollateralized lending, that's potentially a multi-TRILLION $$$ market. That's big - I explore their design here.

While intern’s not gonna press the ‘buy’ button for you, he WILL make sure you have a grasp on YT-cUSD’s potential. Please do read and understand @capmoney_'s design, their point system, and YTs before making any decisions! NFA NLA NMA MDMA Pendiddler