Interesting trade occurring over on
@pendle_fi if you're both HYPE and YT aligned this weekend.
@ValantisLabs' stHYPE has had a rate spike over the past 48 hrs, spiking up to almost 3% APY. If you're someone who's bullish on HYPE, but like me doesn't quite understand where this rate spike has come from Pendle opens up a fun play for you.
Basically, Pendle gives you the opportunity to speculate on whether you think that this stHYPE rate is here to stay. Think its going to hang around at ~2.9-3% APY over time? Then you could make a ~30% gain denominated in stHYPE over the life of the market (94 days) by setting limit orders at ~2.1% APY.
Think that these rates are only a flash in the pan but that other people might be willing to buy into the above? Then you could have a look at minting PT/YT's using your stHYPE that you already hold and setting limits to sell your YT's, keeping hold of the portion of the asset that will be worth 1 stHYPE at market close (the PT), while selling your YT to immediately realise the overrealised current pricing to either buy back in at a discount, locking in the gain, or just happy you locked that overinflated yield in 3 months in advance!
Where yield branches out from the norm there is a Pendle market which deserves your attention. Thanks for reading, try not to get slipped to hard as you shove into the YT's!