Evaluating Performance of Pendle Liquidity Pools (Part 2)

Summary We have performed a study on the performance of the following Pendle pools against the underlying pool: PT-stETH-26DEC24/SY-stETH (Ethereum), PT-GLP-28MAR24/SY-GLP (Arbitrum), and PT-gDAI-28MAR24/SY-gDAI (Arbitrum) We found that providing liquidity on Pendle is superior to depositing the asset in the underlying pool in most cases even when excluding PENDLE incentives In the worst case, the IL of a Pendle LP compared to the underlying pool was 0.85% The performance of an LP using zero price impact mode or otherwise depends on the underlying and implied APY of the pool Introduction In th