I promised to explain Yield Tokens (YT) on @pendle_fi. From today, everyone will understand Pendle's power. Understanding this is a must before the market goes up again. Let’s dive in. 👇

Many of our crypto bros are suddenly spamming “US10Y is at 5%, biggest crash incoming.” Maybe. But look at the chart. The 10Y was already around 5% in the mid-to-late 60s and then spent decades above it. Equities still went higher. The 90s bull market did not need a sub-5% 10Y. A lot of that decade ran with yields at or above where we are now. Then 2008 ushered in the zero-rate / QE era. That’s the part of the chart most new-gen macro bros grew up looking at. If you've only experienced the post-2008 world, 5% probably looks like the end of the financial system. Historically, 5% is normal. It only looks extreme if your sample starts after 2008. A 5% 10Y absolutely changes the opportunity cost of capital. It doesn't automatically mean every risk asset gets nuked. The party can continue until it doesn't. Maybe I'm wrong and everything crashes. But spamming daily, “5% on the 10Y. Everyone is going to sell risk assets. Panic as fuck my bros.” is such a dumb take.

Now with the new Arbitrage Terminal update, you can get notified when: - Your position gets close to liquidation - Wallet starts paying interest - Maturity is approaching - Better roll-over opportunity appears One more piece of the puzzle.

As DeFi assets continue to mature, I think trust + quantifiable risk assessment will become increasingly important infrastructure for the next leg of adoption. It's easy to surface yield onchain, but what's much harder is answering the real question when you start allocating capital. What are the true (seen & unseen) risk am I actually taking to earn it? A 10% APY across two vaults can represent completely different exposures across smart-contract risk, collateral quality, liquidity, counterparty risk + potential loss severity. Retail capital can sometimes operate on reputation + headline APY. Institutional capital generally can't. Funds, treasuries + professional allocators need a defensible framework for comparing opportunities, quantifying downside + ultimately justifying why capital should be deployed in the first place. That's why I think @CredoraNetwork is such an important component of @redstone_defi's increasingly verticalised stack. Rather than simply assigning subjective scores, Credora translates DeFi risk into quantifiable probabilistic outputs: 1. Assets are assessed through Probability of Default (PD) 2. Markets use Probability of Significant Loss (PSL) derived from 100,000 Monte Carlo simulations alongside additional risk factors specific to the exposure Those probabilities are then mapped onto the familiar A+ → D rating framework, calibrated using 30+ years of historical default data from S&P, Moody's + Fitch. More importantly, this isn't limited to tokenised RWAs or stablecoins. Credora's coverage extends across tokens, lending markets + vaults, including the crypto-native structures that traditional rating frameworks often aren't designed to assess. Its ratings are already distributed directly into major DeFi venues including Morpho + Spark, while its public platform covers 160+ vaults, 250+ markets + 60+ assets. IMO, this is an underrated prerequisite for DeFi's maturation. TradFi didn't scale institutional credit markets purely because assets existed + yields were attractive. It developed an entire infrastructure around pricing, ratings, risk models, reporting + settlement that allowed different pools of capital to understand what they owned and operate within defined mandates. DeFi increasingly needs its own version of those rails. And this is where the strategic fit with RedStone becomes much clearer. RedStone tells protocols what an asset is worth. Credora helps allocators understand the risk of owning or lending against it. Combined with RedStone's broader institutional infrastructure, that pushes the stack beyond simply providing oracle feeds towards something much closer to an end-to-end financial intelligence layer. Pricing → risk assessment → collateralisation → liquidation → settlement. Each additional layer makes the others more valuable. And IMO that's ultimately where the acquisition becomes particularly strategic. As more institutional capital moves onchain, the opportunity isn't simply to provide data to more assets. It's to become the infrastructure through which those assets are priced, understood, trusted + ultimately allocated to. The next leg of DeFi adoption requires more than yield, it requires making risk legible enough for serious capital to participate at scale.

In 2023, I decided to focus almost entirely on @pendle_fi. Why? I simply saw the PMF. Now I'm seeing the same pattern again. This time with @boros_fi. Pendle changed DeFi forever by opening opportunities that weren't available before. Pendle became the place where yield products wanted to be listed and where users could access some of the most attractive yields in DeFi. Boros is becoming a major venue for funding-rate trading, arbitrage and hedging. But what really interests me isn't just the high APR. It's the whole infrastructure underneath it. Funding-rate arbitrage has existed for years, but it was mostly a strategy for professional desks. You needed capital across multiple exchanges, multiple margin accounts and active management of both sides. @Gate CrossEx changes that. One collateral pool can support the positions across venues, while the Arbitrage Terminal from the Pendle team makes the entire strategy dramatically easier to execute. In practice, it looks like this. You open a 4-leg position: two Boros legs and two perps through CrossEx. The Terminal does it in two clicks and locks in a fixed APR, often around 20% or more, instead of leaving you exposed to floating funding. And I believe this can eventually make funding-rate arbitrage accessible to a much larger pool of capital. I can see Boros becoming one of the main venues for investors and funds looking to access fixed-rate funding strategies. Double-digit fixed APRs are something capital allocators naturally want access to. Of course, it's still very early. Large funds don't just deploy meaningful capital into a new product overnight. The product needs to be battle-tested, liquidity needs to grow, infrastructure needs to mature and the operational side needs to become institutional-grade. But that's exactly why I think we're early. Step by step, as adoption grows, I can see funding-rate and fixed-rate strategies becoming a much larger and more systematic allocation inside investment portfolios. Boros doesn't exist in isolation. Just to be clear, everything below is my forward-looking thesis. Boros revenue is not currently being directly shared with PENDLE or sPENDLE holders. As Boros scales, it can become a meaningful additional revenue source for Pendle. If this happens, the potential winners aren't just the users earning attractive yields. There is another potential winner: $PENDLE holders. And potentially an even bigger beneficiary: $sPENDLE holders. I believe Boros can eventually generate meaningful value for PENDLE holders through Pendle's value-accrual mechanism, with buybacks helping offset emissions and benefiting sPENDLE holders. This is why I don't think we've seen the full Boros story yet. Funding-rate arbitrage is only the first chapter. Boros will evolve in many more ways from here. Maybe that's why it's already in the name: Boros. Based on the ancient Greek word meaning “to eat.” Boros eats everything. Then redistributes it to its participants.

My Boros legs mature in 4 days. Through the arbitrage terminal, I can roll them into a market with longer maturity. So now, I’ve locked 35.25% fixed APR for 39 days. That is the beauty of timing a fixed yield on @boros_fi.

Growing market opportunity for @pendle_fi is inevitable. We're increasingly entering the exponential phase of the S-curve adoption, with Pendle sitting directly in the path of multiple rapidly expanding markets: 🔸 Stablecoins → projected ~13x to $4T by 2030 🔸 Tokenised RWAs → estimated ~$2T by 2030 🔸 Equity Perps → OI already 10x in just 6 months to $6.2B And these are only a few verticals. As more assets + financial activity move onchain, increasingly more yield surfaces emerge alongside them. More yield-bearing assets → more demand for fixed rates, yield speculation + hedging → larger addressable market for Pendle That's what makes the positioning so powerful, and the best part about this is how Pendle is naturally positioned to capture any new narrative. All roads lead to $PENDLE.

Crypto + Macro Stuff I'm Looking At Today ... - Total crypto market cap is back above $3T (LFG!!!!) 💪 - $QQQ at $738.78 (1% below prior ATH) - Oil at $94.58 - Gold at $4342.00 - Quiet week in macro, only thing of note is a bunch of Fed members speaking - Lots of contention on the TL re: Kalshi the last couple days - Trump says AI "will be bigger than the Industrial Revolution or the internet itself" - Bitmine now up to 4.9% ownership of all circulating $ETH - $HYPE closing in on $100 mark - Seeing a bunch of talk about Backpack $BP the last few days - see DefiIgnas and alpha_pls's recent tweets for good analysis of it - $STONK also getting lots of attention -Seeing lots of really interesting commentary on $NEAR as well, check out crypto_condom and goodalexander's recents posts on it if you're interested - $ENA also red hot - Is QFEX gonna be the best new airdrop to farm after Variational? (h/t @OG_Branxi - and make sure to give him a follow!) - Been seeing renewed talk about Frax on the TL (long-time frens will remember I was a big $FXS bull back in the day :) ) - ZetaChain is apparently winding down - PancakeSwap and Coinbase both now adding support for pre-IPO trading if I'm understanding right - Very interesting stat from RaoulGMI re: revenue-per-employee numbers going up... for Meta it went from $1.4M in 2023 to $2.9M today... for Amazon it went from $292K to $498K today... for Nvidia it went from $1M in 2023 to $5.1M today... really tells the story of the current economy imho... great time to own $QQQ but not a great time to be an employee... - Top Performing Top 200 Coins On The Weekly Are: $AKE at +212%, $DRV at +187%, $BR at +123%, $ZAMA at +103%, $STONK at +73%, $BP at +68%, and $RAIL at +65% - Top 10 Projects By 7 Day Fee Generation per DefiLlama are: Tether, Circle, Pump, Polymarket, Uniswap, Pons, Hyperliquid, Axiom Pro, Lido, and Raydium Conclusion Is incredibly nice seeing some good price action and renewed excitement on the TL! Enjoy it my brothers and keep rep-maxxing hard! LFG💪