Pendle Ether.fi YT Tiger

Deposit YT-eETH and earn a high fixed yield. (For Pendle YT tokens, the time of its maturity is 00:00 UTC on the date specified on the token. For more information, please see Pendle's documentation).

Strategic Use Cases

• You hold YT-eETH and want to maximize yield on your holdings

• You want to earn yield in YT-eETH

• You are comfortable selling your YT-eETH for weETH at a profit if the market conditions are favorable (-10%).

Payoff Scenarios

For each scenario below, assume the following:

100 YT-eETH-26Sep24 investment in the 'Pendle Ether.fi YT Tiger' Vault

Pendle Ether.fi-YT Tiger terms:

1. Investment duration: 27-day

2. Underlying asset = YT-eETH-26Sep24

3. Strike price = 90%

4. APY = 16.63% (1.15% per 27-day vault)

5. YT-eETH-26Sep24 price on Day 1 = 0.0015 weETH

Scenario 1: No Currency Conversion - Deposit YT-eETH, Receive YT-eETH

Example Scenario: YT-eETH-26Sep24 price movements during 27 day period

What happens in this scenario?

• TLDR: deposit YT-eETH-26Sep24, receive YT-eETH-26Sep24

• YT-eETH-26Sep24 price on Day 1 is 0.0015 weETH and ends on Day 27 at 0.0013 weETH which is below the strike price of 0.00135 weETH (90% of Day 1 price)

• Thus the vault trade expires and no currency conversion occurs. The full principal that was deposited by the user is returned (100 YT-eETH-26Sep24). The user earns 1.15% yield paid in YT-eETH-26Sep24 (same currency as deposit)

• Deposit and yield are automatically reinvested for compounding returns into a new 27-day vault

What is the payoff for the investor?

• Initial deposit = 100 YT-eETH-26Sep24

• Deposit returned = 100 YT-eETH-26Sep24

• Yield earned = 1.15 YT-eETH-26Sep24

  • APY = 16.63%, single 27-day vault yield = 1.15%

• Total payoff = 101.15 YT-eETH-26Sep24 after 27 days (deposit + yield)

Scenario 2: Currency Conversion - Deposit YT-eETH, Receive weETH

Example Scenario: YT-eETH-26Sep24 price movements during 27 day period

What happens in this scenario?

• TLDR: deposit YT-eETH-26Sep24, receive weETH.

• YT-eETH-26Sep24 price starts at 0.0015 weETH and ends on Day 27 at 0.0016 weETH, above the strike price of 0.00135 weETH. This results in a 'conversion'.

• A conversion occurs, whereby the deposited YT-eETH-26Sep24 is automatically sold for weETH (at the 'strike price').

• The user also earns 1.15% yield, which is paid in the same currency (weETH).

What is the payoff for the investor?

• Initial deposit = 100 YT-eETH-26Sep24

• Deposit returned = .135 weETH

  • 100 YT-eETH-Sep24 sold for weETH @0.00135

• Yield earned = 0.0015525 weETH

  • APY = 16.63%, single 27-day vault yield = 1.15%

• Total payoff = 0.1365525 weETH after 27 days (deposit + yield)

Scenario 3: Price Moves Above Strike During Trade - No Conversion

Example Scenario: YT-eETH-26Sep24 price movements during 27 day period

What happens in this scenario?

• TLDR: deposit YT-eETH-26Sep24, receive YT-eETH-26Sep24.

• YT-eETH-26Sep24 price on Day 1 is 0.0015 weETH and moves above the strike price (0.00135 weETH) on multiple occasions. However, the price at expiry ends below the strike price.

• No conversion occurs because the payoff is calculated based on the prices at expiry of the 27-day vault.

• The full principal that was deposited by the user is returned to them (100 YT-eETH-26Sep24). This is automatically reinvested into the next vault.

• The user also earns 1.15% yield, which is paid in the deposit currency (yt-eETH-26Sep24).

What is the payoff for the investor?

• Initial deposit = 100 YT-eETH-26Sep24

• Deposit returned = 1.15 YT-eETH-26Sep24

• Yield earned = 1.15 YT-eETH-26Sep24

  • APY = 16.63%, single 27-day vault yield = 1.15%

• Total payoff = 101.15 YT-eETH-26Sep24 after 27 days (deposit + yield)