(Pe,P) and (Pa,P) is an initiative that rewards long-term $PENDLE holders and contributes value to the protocol by providing liquidity for PENDLE / ETH or PENDLE / AVAX OT and YT pools.
These pools allow users to speculate and hedge their swap fees, giving a good example of how much deeper the DeFi space can expand beyond traditional finance.
This grants the protocol stickier liquidity by creating an incentivized token layer on top of the PENDLE / ETH pool while giving it more utility. As $PENDLE forms a large component of this, the pools predominantly reward users who provide their $PENDLE liquidity.
In sum, (Pe,P) and (Pa,P) achieves 3 objectives:
- Increase $PENDLE liquidity and creates a stickier pool2 incentive
- Provide liquidity to the protocol
- Reward users for contributing to the protocol
With Zap on Avalanche, you can achieve (Pa,P) in just one click!