According to Milk Road, Yield Tokens are designed for speculators seeking to profit from rising yields, offering direct exposure to yield increases. Additionally, some Yield Tokens qualify holders for airdrop points, providing extra value for traders aiming to maximize returns. This dual benefit makes Yield Tokens an attractive option for active crypto market participants focusing on yield-driven strategies (source: Milk Road, May 22, 2025).

According to Milk Road, Pendle Finance (@pendle_fi) introduces a mechanism that splits any yield-bearing token into two distinct components: Principal Tokens, which represent the base asset, and Yield Tokens, which represent the future yield generated by that asset (source: Milk Road Twitter, May 22, 2025). This structure enables crypto traders to separately trade or manage risk exposure to principal value and future yield. The innovation enhances DeFi options for yield farming and fixed-income strategies, increasing flexibility in portfolio management and potentially boosting liquidity for yield-based assets in DeFi markets.

According to Milk Road (@MilkRoadDaily), Pendle protocol earns approximately $20 million annually through two main revenue streams: swap fees collected whenever users exchange tokens, and a share of the yield generated by Yield Tokens on its platform. This robust fee model provides Pendle with a consistent income base, which can enhance its long-term sustainability and attract further liquidity. For traders, the protocol’s growing revenue signals increased platform adoption and potentially greater token value stability, factors that are closely monitored in the DeFi and broader crypto markets (source: Milk Road, May 22, 2025).

According to @milesdeutscher, Pendle Finance ($PENDLE) enhances stablecoin utility by developing a yield market that incorporates stablecoins and their derivatives. It achieves this by dividing yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), enabling traders to speculate or hedge efficiently.