PENDLE THESIS: “THE BEST STABLECOIN BETA PLAY?”

Summary from the TLDR Crypto newsletter

Stablecoins are entering a hyper-growth phase, evidenced by trading volumes outpacing PayPal 20x and Visa 3x and Circle's IPO being 25× oversubscribed. By tokenizing yield-bearing assets into Principal and Yield Tokens, Pendle has secured 30% of the fast-growing YBS market and deployed 80% of its $7 billion TVL in stablecoins, delivering $35–40 million in annualized revenue. Upcoming launches, including Boros for perpetual funding-rate tokenization and Citadel for cross-chain and institutional markets, promise to dramatically expand Pendle's addressable market and push annual revenues toward $100 million. Trading at a sub-20 P/E despite Circle's 80x multiple, Pendle's entrenched network effects, vePENDLE governance model, and revenue-sharing mechanics suggest significant upside as stablecoin adoption accelerates.