M1 Capital Leverages Pendle's Yield Products for Institutional Strategy
M1 Capital Leverages Pendle's Yield Products for Institutional Strategy
馃幆 Three Ways to Slice Yield
Pendle's yield transformation creates three distinct opportunities from a single yield source:
- Principal Tokens (PTs) for fixed yield
- Yield Tokens (YTs) for leveraged yield
- Liquidity Pools (LPs) for boosted yield
Amsterdam-based M1 Capital ($110m AUM) demonstrates institutional adoption by utilizing all three products:
- Leveraging fixed-yield PTs on money markets
- Trading yield fluctuations with YTs
- Accessing enhanced yields through LP positions
The fund serves over 100 investors through market-neutral strategies focused on identifying yield inefficiencies.
Pendle transforms a single yield source into three unique opportunities - PTs for fixed yield, YTs for leveraged yield, and LPs for boosted yield. This allows every user to define their strategies for a specific yield preference, be it certainty, speculation or optimization. M1
Pendle Implements Dynamic Incentive Cap and Fee Adjustments
Pendle announces significant protocol updates as it prepares to integrate @boros_fi: - **New Dynamic Incentive Structure**: Implementing caps based on pool swap fee contributions, starting high for TVL bootstrapping and adjusting weekly - **Fee Changes**: - Swap fees reduced from 2% to ~1.3% - YT yield fees increased from 5% to 7% The update addresses current inefficiencies where bottom 5% of pools consume ~50% of PENDLE emissions. New caps will rise quickly with performance but decline gradually to maintain stability. *Protocol metrics show pools now sustain liquidity with minimal incentives, indicating natural market demand.*
Aave Expands Principal Token Collateral Support
Aave has expanded its collateral options by adding Ethena PT-USDe (September 2025 maturity) as supported collateral. This follows recent updates including: - Cap increase for PT-sUSDe 25SEP2025 - Previous cap raise from $250M to $400M for PT-eUSDe - Addition of PT-sUSDe (July 2025) as collateral Users can now access these markets directly through Aave's platform for lending and borrowing. Each Principal Token represents a fixed-yield bearing asset with specific maturity dates. [View PT-USDe Market](https://app.aave.com/reserve-overview/?underlyingAsset=0xbc6736d346a5ebc0debc997397912cd9b8fae10a&marketName=proto_mainnet_v3)
Pendle Ecosystem Expands to HyperEVM with New Collateral Support
Pendle continues its multi-chain expansion with integration on HyperEVM network. PT-kHYPE tokens are now accepted as collateral on HyperLendX platform, marking a significant development in the protocol's growth. This follows Pendle's earlier expansion in March when it integrated with Sonic Labs, allowing PTs as collateral on Euler Finance. - PT-kHYPE tokens: Now supported on HyperLendX - Implementation date: November 2025 - Platform: HyperEVM network