Proposal: Integrating Elixir’s sdeUSD into Pendle’s PT/YT Markets

Protocol Proposals
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Proposal: Integrating Elixir’s sdeUSD into Pendle’s PT/YT Markets

Summary:

This proposal seeks community support to integrate Elixir’s staked stablecoin (sdeUSD) into Pendle’s Principal Token (PT) and Yield Token (YT) markets. By enabling trading of sdeUSD’s future yield, Elixir expands liquidity options, enhances yield strategies for holders, and drives broader adoption and ecosystem integration.

Motivation:

Currently, holders of sdeUSD are limited to yield options provided within Elixir’s native protocol. Integrating with Pendle Finance, a decentralized yield-trading protocol, unlocks new yield management and hedging opportunities, creating deeper liquidity and higher composability for sdeUSD assets.

Proposal Details:

• Integration with Pendle: sdeUSD will be onboarded to Pendle’s PT/YT market framework, splitting future yields into tradeable tokens.

• Yield Tokenization: Pendle’s infrastructure will enable users to trade sdeUSD yield separately from principal, allowing yield speculation and advanced yield strategies.

• Liquidity Provision: Incentivizing initial liquidity on Pendle to foster healthy market dynamics and deeper market integration.

Benefits:

• Broader market exposure and increased liquidity for sdeUSD.
• Advanced yield-trading options that attract sophisticated DeFi users.
• Strengthened DeFi composability and ecosystem interoperability.

Potential Risks:

• Market volatility and liquidity fragmentation risk. Initial liquidity incentives and clear documentation will mitigate this.

Implementation Timeline:

• Phase 1 (Month 1): Proposal discussion, community feedback, and governance vote.

• Phase 2 (Month 2-3): Coordination with Pendle team, technical integration, and launch preparation.

• Phase 3 (Month 4): Official launch and incentivization of initial liquidity pools.

Conclusion:

Integrating sdeUSD into Pendle’s PT/YT market structure unlocks innovative yield opportunities, positioning Elixir for expanded liquidity and strategic DeFi composability.

6 Likes
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Given that Spectra already has a PT/YT market (currently with 4.5M deUSD), moving to Pendle could be a somewhat unfortunate choice. There’s a risk of TVL decline due to partial—or even complete—user migration, and this could also affect our relationship with Spectra.

If integration and interaction with Pendle’s ecosystem is a key motivation, I believe it could be more effective to propose this directly to Spectra, or to collaborate with partner dApps (similar to how Potion tracking works) to create integration points within the existing ecosystem—for example, through lvl XP + Potion mechanisms.

That said, if the proposal presents more advantages, I still believe it’s a valid suggestion.

2 Likes
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pendle has 30x more tvl, i don’t know how much you value the relationship with spectra but you have to see this as the difference of binance to bingx, its really not close. also having the two markets can increase volume for both as there potentially becomes an arbitrage available

3 Likes
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Completely agree to add deUSD to Pendle, this is just a bluechip Defi protocol.

Some projects have both Spectra and Pendle pools, and everything is ok, users are differents and there is arbitrage, it won’t hurt the partnership imho

3 Likes