Manual Liquidity Provision
Do more, earn more with your assets
How to Ape
Go to Pendle Pro markets
Select the asset to provide liquidity for
Select “Mint” to mint PT and YT
Provide liquidity on Pendle
Select the pool you want to LP
Switch to “Manual” mode
Approve and confirm the transaction
Redeem rewards from the Pendle Dashboard
[Optional] Lock PENDLE for vePENDLE to boost LP rewards
Note: You can also one-click Zap to Provide Liquidity. You can read the section “Zap to Provide Liquidity” to learn more.
How does it work?
By providing liquidity to Pendle pools, you get to earn swap fees, PENDLE incentives, PT fixed yield, as well as any other rewards given by the underlying yield-bearing asset (e.g. stETH staking yield).
On top of all these rewards, vePENDLE holders can also boost their Liquidity Provision APY up to 2.5X. Click here to learn more.
No Impermanent Loss
Pendle pools consist of Principal Tokens (PT) and their corresponding Underlying Asset.
For instance, the Pendle stETH pool has PT-stETH paired against stETH.
Pendle PTs can be redeemed 1:1 for the Underlying Asset upon maturity. This means that eventually, all of the PT-stETH in the pool can be redeemed for the Underlying Asset which is stETH in this case. The same mechanism applies to all the other pools too.
Impermanent loss (IL) occurs when you provide liquidity to a given pool and the relative price of your assets in the pool changes. However, given enough time, PT = Underlying Asset. Knowing this, it wouldn’t matter if the pool consisted of:
50 PT-stETH + 50 stETH
95 PT-stETH + 5 stETH
Or any other combinations of PT:Underlying. For all intents and purposes, upon maturity, all of these pools contain 100 ETH worth of stETH. In ETH terms, that will be zero IL.
Before maturity, there may be fluctuations in the price of PT vs. Underlying Asset which could lead to temporary IL, but there will be none as long as Pendle LPs hold their position to maturity.
What to Look Out for
LP with Idle Assets
If you have yield-bearing assets (e.g. stETH) sitting idle in your wallet, you can consider providing liquidity on Pendle to earn additional yields on top with no IL risk.
stETH LPs for example will earn:
PENDLE incentives
stETH staking rewards
Swap fees
PT-stETH fixed yield
Boost APY with vePENDLE
You can earn more yield from your LP positions by locking PENDLE for vePENDLE.
With vePENDLE, you can also vote for pools to channel more incentives to them and at the same time earn additional swap fees on top.
Estimate Profit with Calculator
The Pendle calculator lets you estimate the potential profit for strategies such as Buy PT, Buy YT, and Provide Liquidity.
You can also use the calculator to project the amount of PENDLE required to be locked and for how long to get the max APY boost.
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