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gotoalberto.base.eth
@gotoalberto.eth
Pendle.finance protocol has paused its contract, but do you know why this happened? Let me explain in this thread. https://thedefiant.io/news/defi/pendle-pauses-contracts-after-yield-protocol-penpie-suffers-usd27-million-exploit Fixed income protocols are exposed to unexpected behavior if the protocols built on top of them don't function correctly. An example is element.fi (now Delv), which operates in the same way as Pendle and in 2022 offered a fixed APR on MIM (a stablecoin from abracadabra.money). As you know, in these protocols, you deposit the bearing token and receive two tokens: principal (PT) and yield (YT). The PT allows you to claim the principal at the maturity date, and the YT allows you to claim the yield.
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