While holding YT or OT, you can deposit your tokens into the respective liquidity pools and then stake your LP tokens to earn additional yield. Liquidity providers will receive their share of the swap fees, as well as $PENDLE for liquidity incentives.
How to Provide Liquidity?
Liquidity provision and staking can be found on the Stake page. The APR displayed is calculated with both swap fees and liquidity incentives included.
- Click Liquidity under the asset you wish to LP for
- (for YT only) Choose whether you want to LP with single or dual asset. Note that when LPing with single asset, your tokens will be swapped to the paired token to make up the ratio in the pool.
- Enter the amount of liquidity to provide. The amount of the corresponding paired token will be calculated and displayed automatically.
- Add Liquidity!
Remember to stake your LP tokens after providing liquidity in the Stake tab to earn $PENDLE incentives. There is currently no additional utility for YT and OT LP tokens, so no opportunity loss will be incurred by staking. Go slurp that juicy APY!
To remove liquidity, simply perform these steps in reverse. Unstake your LP tokens, and then remove your liquidity from the pool. Once again, for YT, you can choose to remove liquidity with single asset.
Staking incentives are calculated at the end of every epoch, and will be distributed to liquidity providers over the course of 5 epochs. This is done to regulate the amount of $PENDLE in circulation and reduce the inflationary impact of emissions on its price.
An epoch starts on Thursday 8am SGT for Ethereum and at Thursday 8pm SGT for Avalanche, and lasts for exactly one week. For example, if John earns 20 $PENDLE a week for staking, he will receive 4 $PENDLE in the first week, 8 $PENDLE in the second week, up to 20 $PENDLE in the fifth week, after which he will continue to receive 20 $PENDLE every week.
You can check the amount of $PENDLE being vested to your wallet in the Pendle Vesting on the bottom left of the Dashboard.
The Accruing column is an estimated value, calculated based on the current amount of liquidity being provided. The actual vested amount at the end of the epoch can be higher or lower depending on the circumstance.