PENDLE STRATEGY: SHORT-TERM PRINCIPAL TOKENS AND YIELD MAXIMIZATION

Summary from the TLDR Crypto newsletter

Pendle users often target longer-duration principal tokens (PTs) for fixed yields, but pre-token generation event demand for yield tokens (YTs) can create attractive opportunities in shorter-term PTs. When traders buy YTs, their price rises, pushing down PT prices and boosting PT fixed yields. As shown with USDe pools nearing maturity, PTs with just two days left were offering extreme yields (15–25%), thus short-duration PTs can sometimes provide outsized returns if YT demand spikes near expiry.