14h ago
After the major liquidation on October 11, the implied yield in the sKAITO yield market on the Pendle platform is exceptionally high (up to 80%), which reflects not only changes in market yield expectations but also a significant portion due to panic selling of PT leading to discounts. This is because of Pendle's AMM mechanism, which only has the sKAITO-sKAITO PT LP pool, and YT trades by borrowing from the PT LP pool through Flash Swap. The harsher the discount on PT, the higher the price of YT.
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