Pendle price

Translate the Chinese: $FXN is our highest confidence investment for this cycle. We started accumulating from $22 and have continued to buy. Now we have accumulated a fairly large position and plan to hold long-term. This is a complex protocol with a lot to cover, so let's dive deep. @protocol_fx has developed a new financial primitive that allows users to long or short ETH and BTC with up to 7x leverage. The unique aspect is that traders hardly have to pay any funding fees, and they are protected from liquidation through an automatic rebalancing system and a high maximum LTV (95%). Since fees are only charged when opening/closing positions, and the rebalancing mechanism protects users from liquidation, fx is very suitable for medium to long-term trading. I was able to hold a position of 30 ETH from December to July without being liquidated or drained by funding rates. This is thanks to fxUSD, a decentralized stablecoin backed by wstETH, which has rapidly grown to over $120 million in circulation. fxUSD needs to balance the f(x) invariant to ensure that leverage can be provided for free. Think of it as the yin and yang of leverage ☯️. To attract more TVL to fxUSD and ensure leverage is free, an automatic compounding wrapper for the fxUSD-USDC stable pool has been created - fxSAVE. fxSAVE has been the highest yielding stablecoin for months, currently paying over 13% on deposits of nearly $105 million. fxSAVE is integrating with @CurveFinance, @pendle_fi, and @ResupplyFi, with more integrations on the way. Upcoming plans include improving trading UX (like limit orders), deploying on Base, a new CDP lending system called fxMINT (which is actually a brand new product, details are not yet disclosed), and lower trading fees for veFXN lockers. In summary, @protocol_fx has a new type of leverage and stablecoin product that has proven market fit, attracting over $375 million in TVL. However, the market cap is negligible, only $4.3 million! What’s going on? The TGE was a fair launch, with no VCs dumping on you. The price is very volatile, trading between $50 and $150 over the past three months, which is to be expected for such a small market. At $66, $214,000 can buy 3,247 FXN - 5% of the circulating supply, which is our target position level. @protocol_fx is a profitable business that has been distributing revenue from day one, paying out $3.3 million in wstETH to veFXN holders over the past two years. aFXN - an auto-compounding vault from @0xconcentrator and @ConvexFinance - has generated 26.58% returns since its deployment 420 days ago. As veFXN guides about 1.5k FXN emissions weekly, lockers can also earn substantial bribes from projects wanting to incentivize liquidity for fxUSD. These serve as an additional income source and as a supply settlement for fxUSD, supporting the leveraged side of the business. Now it’s time to explain why we believe $FXN is severely undervalued. If @protocol_fx is so great, why is it trading at a $4 million market cap and $75 million FDV? Why isn’t this a billion-dollar protocol yet? The answer lies in the classic story of growth investment vs shareholder dividends... Leverage isn’t free; someone has to pay the cost. Only when the fxUSD-USDC stable pool expands to enable larger trades can no-funding leverage be realized. To attract deep liquidity, most of the fees currently earned are used to incentivize fxSAVE’s high yields. The deep liquidity in the stable pool is enabling whale trades of >$1 million. Fx needs to attract this group to reach the next growth phase and increase the protocol’s opening/closing fees. But these incentives come at the cost of reduced revenue distribution. While fees trended upwards to $270,000 last week, only 2 ETH were allocated as revenue. veFXN holders need to eat, and some in the community are calling for a higher revenue share. This is the dilemma. Reducing fxSAVE incentives could decrease stable pool liquidity, limiting trader sizes and thus reducing whale trade fees. In our view, prioritizing growth is the right choice. Those who are patient will be rewarded once sustainable depth is achieved. Here’s how we see it. At >13% yields, the market has imposed an unnecessarily high-risk premium on fxSAVE, despite @protocol_fx having a proven safety record and team. Building trust and understanding this complex product will be key to resolving this issue. fxSAVE needs to become sticky. Once there is evidence that liquidity milestones have been achieved, the guiding phase can gradually be reduced. Just lowering the yield by 3% would add another $3 million in revenue for veFXN (over $11 per coin/year), while keeping fxSAVE highly competitive at 10%. Fees have increased by 136% this year and are growing exponentially. If this pace continues, it will bring in about $14 million next year - but with new products launching, we believe the potential is even higher. This would place $FXN in the same range as $AERO or $MORPHO (both with FDVs around $2 billion). Even sharing a small portion of these fees would supercharge veFXN’s yields. As the valuation of $FXN rises, the value of emissions will also increase, leading to more bribery income. We see this transition from growth to value capture as fx’s "fee switch" moment. We believe the fair value of $FXN is over $1,000 ($65 million market cap, $1.13 billion FDV), which is 15 times higher than the current price. The current valuation provides an incredible buying opportunity for our accumulation. We believe the market is severely undervaluing $FXN for several explainable reasons: 1. Lack of awareness. Without VC support, fx relies on word-of-mouth marketing and remains relatively unknown outside the Curve ecosystem. 2. Lack of understanding. Fx presents a new but complex financial primitive whose potential is greatly underestimated. 3. Narrow focus on revenue. The protocol is rightly investing in growth, and the market should focus on future potential earnings rather than current earnings. 4. No listing. $FXN cannot be bought or sold on any CEX, as the team has taken a DEX-first approach. Upcoming listing? 👀 These are all good questions and easily solvable. With solid fundamentals, it’s just a matter of time before the market wakes up to $FXN. We expect a dramatic repricing as awareness shifts. Our goal is not to make a little money now, but to make a lot later. NFA DYOR YOLO.