In Part 1 of our Pendle LP Performance study, we looked into the performance of Pendle LPs against non-yield-bearing native asse
11 Sep 2023, 02:14
In Part 1 of our Pendle LP Performance study, we looked into the performance of Pendle LPs against non-yield-bearing native assets.
But will they fare as well against yield-bearing counterparts like stETH, GLP and gDAI? 🤔
TL;DR
🔹Pendle LPs generally outperform non-Pendle users, even when excluding PENDLE incentives.
🔹In the worst case, IL was observed to be 0.85% only
🔹When including PENDLE incentives, there was zero IL in the stETH and gDAI pools
🔹The performance of an LP using Zero Price Impact Mode vs. without depends on the Underlying and Implied APY of the pool. Regardless, Pendle LPs still generally outperform non-Pendle users.