Pendle Finance: How to Long Tokens at a Discount

Before we get started, this is not a recommendation or endorsement to buy ETH or any token mentioned. It is purely for informational purposes on Pendle Finance.

Normally, we stick to strategies in DeFi which allow us to earn passively with assets we hold. However, a common strategy among DeFi investors is to buy and hold assets over the long term. Despite all you can learn trading, most will admit their strategy to dollar-cost-average (DCA) over time, has proven to be their most profitable strategy. For those of us DCAing, buying at the lowest average price is always key.

For crypto investment funds and full-time angels, there are opportunities to buy tokens at a discount OTC (over the counter). Especially during bearish markets, teams will look for long term investors who will work to support the protocol if they can secure buying tokens at a discount from a DAO or treasury. An example would be an investor buys $100,000 of X token at a 50% discount against the 30-day average price, and their tokens then vest monthly over 24 months. Sounds nice right? Get tokens at a price well below the market, and then receive those tokens (vest) over the long term and hopefully the market price is up by then, and the investor can meaningfully contribute to the DAO or project.

What gets me most excited about DeFi is taking a legacy mechanism that works, but is gated to a few, and making that available to anyone in a permissionless way. Pendle Finance is a great example of a protocol that gives any DeFi investor who’s brave enough to click, the opportunity to long cryptoassets at a discounted price!