The dawn of a new financial era between TradFi <> DeFi is emerging Due to institutions favorite new asset class in Defi: Yield-bearing stablecoins But current AMM/DEX designs can’t handle this type of asset This is how @Terminal_fi solves this, why it matters, and how to get involved: 1/ The Problem AMMs (like Uniswap) were never designed for assets that appreciate continuously If you provide liquidity for a pair like sUSDe/USDT: sUSDe accrues yield → its price drifts above 1 Arbitrageurs "drain" sUSDe from the pool LPs are left holding only USDT, losing the yield they should’ve earned This is called yield-derived impermanent loss (unique to yield bearing assets like sUSDe) It’s why LPs avoid these pools, thus creating a feedback loop that makes it difficult to bootstrap liquidity 2/ The Solution Incubated by Ethena, Terminal is the first DEX purpose-built for yield-bearing stablecoins like sUSDe and USDtb (BlackRock-backed) Think of it as a liquidity hub for digital dollars + tokenized assets How it works: Redeemable Tokens (rUSDe): Wraps sUSDe into a stable version pegged to USDe As yield accrues, new rUSDe is minted and distributed pro-rata back to LPs Yield Skimming: Instead of letting arbitrageurs siphon away yield, it flows directly back to liquidity providers Stable Pools: Pools trade redeemable tokens, so balances stay healthy and impermanent loss is removed 3/ The Result: LPs earn fees + yield without getting drained Traders get deep, efficient liquidity for yield-bearing dollars Protocols can finally bootstrap markets without burning incentives 4/ Why It Matters: Terminal isn’t “just another DEX”, it serves as the "bridge" between sUSDe and USDT, the 2 largest stablecoin issuers (Tether and Ethena) in their respective categories (stablecoins and yield bearing stablecoins) This is due to the deep liquidity of ~237M in tUSDe already established on Pendle due to ~247M in pre commits of USDe on Terminal Terminal’s tUSDe currently has the best APR for USDe on Pendle (~12% APY) Terminal will have 2 core products Permissionless Exchange/DEX = First product deployment scheduled before Pendle’s December pool maturity with integrations across Pendle + Aave + Ethena Permissioned Exchange = future deployment designed specifically for institutions and RWAs 5/ The Vision For most people, the essentials of finance can be boiled down to three things: Hold dollars, earn yield automatically, spend instantly You hold your stablecoin stack in sUSDe, a dollar that grows in value directly in your wallet Terminal works in the background handling conversions The moment you swipe your card or send a transfer, your yield bearing stablecoin is instantly swapped into USDT (or whichever currency is needed) The merchant gets paid in full, while you’ve been compounding yield right up to the final second 6/ How to farm Several options depending on your risk appetite and asset type preferences Also make sure your in the Dec maturity Date pools 7/ TLDR on How Pendle assets/products work YT = "leveraged points", the value of your YT is worth 0 at the maturity date in this case 17 Dec 2025 (~90 days), but PT = fixed APY, the value of your PT doesn't go to 0, but you forfeit any potentially earned points, currently 19.46% APY for tUSDe LP = lower APY and points multiplier, value of your LP doesn't go to 0 I typically go for a split of ~15% YT and ~75% LP as the more "safe" brain off option More risk = more total allocation towards YT if you are bullish that the value of the points you're "paying for" will be worth more than its $ USD cost What you get: ~12%APY (for PT and LP), Terminal points/Roots + Ethena points/sats I personally have a percentage of my stablecoin portfolio on Terminal and Pendle(Insightful)