The Rise of Pendle and the Ongoing $PENDLE Wars

Pendle's surge is unmistakable. However, the real intrigue lies in the unfolding dynamics of the $PENDLE wars. In this analysis, we will unpack:

- $PNP and $EQB's vePendle holdings

- The price trajectories for $PNP and $EQB

- The preferences of the smart money regarding $PNP and $EQB

So, if you're eager for the alpha, let's dive in.

---

1. Pendle's Underlying Protocol

Pendle operates as a multi-chain protocol, championing yield trading. The platform empowers users to segregate yield-bearing assets into principal and yield tokens, subsequently cultivating a secondary market for these tokens. The protocol's rise to prominence is attributed to ETH's transition to PoS.

---

2. The VeTokenomic Structure of $PENDLE

The $PENDLE token employs the veTokenomic system. Through this, vePENDLE holders have the autonomy to channel emissions to their preferred pools while simultaneously garnering shares from protocol fees. Owing to the lucrative outputs from PENDLE pools, vePENDLE's value proposition is undeniable. This is where Penpie and Equilibria enter the fray.

---

3. The Tussle: Penpie vs. Equilibria

Penpie and Equilibria, two prominent protocols, are currently locked in an intense battle to amass the highest volume of vePENDLE. The looming question is whether the market will witness a singular dominant entity, similar to Convex's relationship with Curve.

---

4. The Current State of Affairs

As of now, around 28m PENDLE is reserved for vePENDLE. Breaking this down:

- Equilibria has secured 7.5m

- Penpie trails slightly with 7.1m

Interestingly, despite Equilibria's initial advantage, the competition remains fierce.

---

5. Analyzing Price Movements

In terms of price action, $PNP exhibits a more bullish stance compared to $EQB. This might insinuate a stronger market sentiment towards $PNP. However, both tokens reflect similar FDVs. Ultimately, price fluctuations will be closely tied to the volume of vePENDLE amassed. Hence, vigilance is key.

---

6. The Smart Money's Play

Current trends suggest a preference amongst smart money for $PNP over $EQB. Here's a glance at three influential wallets and their respective $PNP/$EQB positions:

---

7. Wallet 1:

- $PNP: $26k

- Other holdings: $GRAIL ($30k), $ARB ($2k)

$GRAIL emerges as a token of interest, particularly given its latest governance proposal advocating for $ARB tokens from its foundation.

---

8. Wallet 2:

- $PNP: $25k

- Other holdings: $ARB ($30k), $RDPX ($13k), $FXS ($5k), $ICE ($5k)

$RDPX, due to its impending dpxETH launch, holds promise. It's speculated to amplify $RDPX's utility through a distinct bonding mechanism.

---

9. Wallet 3:

- $EQB: $22k

- Other holdings: $MUTE ($25k), $SPA ($7k), $UNIDX ($5k), $ICE ($5k)

The wallet has utilized about $900k as collateral on AAVE, borrowing roughly $450k in stables. Given that $MUTE is one of the principal DEXs on ZkSync, the substantial investment in it is noteworthy.

---

For a deep dive, here are direct links to the wallets:

- [Wallet 1](https://app.loch.one/home/0x17d976f126120303dbf40498644eed6fabf607cc)

- [Wallet 2](https://app.loch.one/home/0x7cf9f878942489b7a1725d628a9e59fb1b38ab27)

- [Wallet 3](https://app.loch.one/home/0xb2943ff4cebdb48c5772285626b60482558fc66a)

---

Acknowledgments: A heartfelt shoutout to the guiding stars of this market:

@MacBubblemaps, @rektdiomedes, @defitrader_, @Dynamo_Patrick, @VirtualKenji, @crypto_linn, @shivsakhuja, @AkadoSang, @CryptoGirlNova, @paulvinitsky, @Louround_, @Only1temmy, and @AngeloDodaro.

Stay updated for more insights and revelations!