MODULAR CAPITAL PENDLE THESIS

Summary from the TLDR Crypto newsletter

Pendle is the leading marketplace for trading yield on stablecoins. It captures over 30% of the growing $11 billion yield-bearing stablecoin market with $4 billion in TVL, $50 billion in lifetime volume, and $35-40 million in annualized fees. Favorable regulatory shifts are driving a projected doubling of total stablecoin supply to $500 billion and a rise in yield-bearing issuance to $75 billion over the next 18-24 months. Pendle's two-pronged flywheel — airdrop bootstrapping into a durable yield marketplace — has diversified its stablecoin exposure from <20% to 83% of TVL. At 25% market share of yield-bearing coins, Pendle could scale to $20 billion TVL and $200 million in protocol fees, implying a potential $6 billion valuation.