PENDLE single sided staking
Introduction
Pendle’s protocol leverages on the base lending layer created by prominent DeFi protocols such as Aave and Compound, which has shown incredible growth and community acceptance. We build on this layer by separating the future cash flows from these lending protocols’ yield tokens and tokenizing it. This allows future yield to be traded without affecting ownership of the underlying asset.
Ownership of the future cash flows is guaranteed by the smart contract, so there is no need to worry about collateral or counterparty risk, as long as the underlying lending protocol is not compromised.