Manual Liquidity Provision

Do more, earn more with your assets

How to Ape

  1. Go to Pendle Pro markets

  2. Select the asset to provide liquidity for

  3. Select “Mint” to mint PT and YT

  4. Provide liquidity on Pendle

    1. Select the pool you want to LP

    2. Switch to “Manual” mode

    3. Approve and confirm the transaction

  5. Redeem rewards from the Pendle Dashboard

  6. [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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