Pendle just got a volatility market for Lido $stETH ⚡️
For the first time, Pendle Yield Tokens (YT) can be used to bet on stETH volatility.
Now possible via ARM-WETH-stETH. Here's how it works 🧵
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The stETH ARM earns yield by arbitraging stETH/ETH price discrepancies — buying stETH at a discount and redeeming it via Lido.
More stETH volatility = higher yields
With Pendle support, you can now tokenize that future yield and trade it directly.
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Use cases include:
→ Speculating on $stETH volatility through YT
→ Locking in fixed yield from the stETH ARM
→ LP’ing on Pendle to earn trading fees + rewards
This is a new type of yield market tied to protocol-driven arbitrage.
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ARM-WETH-stETH is unique due to how it generates yield:
✅ Yield from Lido stETH arbitrage
✅ Lending yield on idle ETH via Morpho
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The ARM is becoming a composable building block across DeFi. Now live on Pendle — with more integrations coming soon.
Explore the market: https://app.pendle.finance/trade/markets/0x53f940db819400f226466f5ad330c177a4be6b3c/swap?view=yt&chain=ethereum
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August 27, 2025 204
