Original Title: Here’s how you can earn a 260% return on investment in <2 months using stablecoins

Original Author: hoeem

Translated and Edited By: johyyn, BlockBeats

Editor’s Note: In Pendle’s DeFi protocol, the Yield Token (YT) represents the "future yield right" of a yield-generating asset. Currently, the market valuation of csUSDL-YT is significantly undervalued. This piece calculates the potential value of Coinshift's points airdrop and highlights that, although YT yields appear less stable compared to PT, its inherent "points-as-capital" nature offers immense leverage potential and airdrop arbitrage value, making it arguably one of the most cost-effective opportunities in today's market.

The following is the content of the original article (some reorganizing has been done for better readability).

Can you imagine earning a 260% return on investment in under two months using stablecoins?

Such an arbitrage opportunity is currently available: purchasing YT-csUSDL on Pendle.

What is YT?

YT, or Yield Token, is one of the core mechanisms of Pendle. It allows you to trade the future yield rights of a particular yield-generating asset.

When csUSDL (a Paxos-supported treasury-backed stablecoin) is tokenized into SY, it is split into two parts:

1. PT (Principal Token): Represents fixed returns and comes with lower risk;

2. YT (Yield Token): Represents future yield rights, which are more volatile but often undervalued by the market.

The key is this: apart from yield, YT also earns a significant amount of airdrop points. However, these earnings are frequently mispriced in the market.

Current Arbitrage Opportunity: YT-csUSDL

Let’s assume you invest $1,000 to purchase csUSDL YT due to expire on July 31, 2025:

Base APY (csUSDL): Approximately 4%

Market Implied APY: ~10%

Current YT Price: ~0.0143 USD

Units Available for Purchase: ~70,130

Pendle Points Multiplier: 1x

Daily Coinshift Points: 30

Does this look like buying low yields at a high price? In reality, the greatest value lies in the overlooked yield from points. The core question is glaringly obvious: if you can secure a 10% return, why settle for 4%? The answer essentially boils down to one principle: Points = Capital.

Why Does This Strategy Work?

Even though the majority of users disregard Yield Tokens (YT) due to the apparent yield difference (4% vs. 10% from the underlying asset), this misjudgment stems from the inability to account for the capitalization of points (Points as Capital). The 6% implied yield gap reflects the market's systemic undervaluation of point-based rewards. Holding YT generates 30 SHIFT points daily, and over a 55-day holding period, this accumulates to a total of 115,715,017 points. Now, the key question remains: how can this implicit capital be assessed accurately?

Airdrop Valuation

Holding Period: 55 days
Total Points Earned:
70,130 × 30 × 55 = 115,715,017 points

Assumptions:

1. Current Total Points in Circulation: 7.6 billion

2. Daily Points Growth: 300 million

3. Airdrop Timing: After 55 days

4. Total Points at Airdrop: 24.1 billion

5. Airdrop Pool Ratio: 5%

6. Token Launch Valuation (TGE FDV): 150 million USD

Using these estimates, the value of each point is approximately 0.0000311 USD.
Your total points value = 115,715,017 × 0.0000311 = 3,601.09 USD

Adding the baseline yield of 6 USD
Total Return = ~3,607.09 USD
This represents an ROI of 260.7% in under two months!

Conservative Estimation

Even if the FDV is halved to $75 million, it can still achieve a return rate of approximately 80%. Considering Coinshift’s latest funding valuation of $150 million, if investors aim for profit, the future market cap is highly likely to climb higher. Hence, this valuation seems reasonable and serves as a reliable reference point.

Note: FDV (Fully Diluted Valuation) is calculated using the formula: Fully Diluted Valuation = Maximum Supply * Current Price.

Leverage Strategy: 68x Reward Points Leverage

YT is a highly leveraged asset, as you only need to pay 1.5% of the csUSDL to buy its future yield.
This means:

Any increase in returns will be amplified by leverage;

You also gain high multiple reward points (Shift Points);

You can sell at any time or set a limit sell order for a flexible exit.

Why Is the Current Market in Your Favor?

Most DeFi users are rushing for PT to secure stable returns, causing YT’s implied yield to drop and its price to become cheaper. For users who can analyze mispricing opportunities, a cheaper YT actually means higher potential returns. Moreover:

You can sell YT at any time or place a sell order;

Even if you exit early, you can retain the points you've accumulated.

Conclusion

By staking stablecoin csUSDL for a Coinshift airdrop, you can achieve controlled returns of up to 260% in less than two months. The strategy allows for flexible exits, making it suitable for investors seeking high-risk, high-reward opportunities.

YT is not for "conservative yield farmers" aiming for a mere 6% return. Instead, it’s a tool for capital allocators willing to take on reasonable risks and pursue asymmetric opportunities. If you understand Pendle’s mechanism and have confidence in Coinshift, this represents one of the cleanest and most straightforward arbitrage opportunities currently available in the DeFi space.

Of course, don’t forget: DYOR (Do Your Own Research), simulate risks, and allocate positions reasonably. Once the market catches on to this operation, YT’s price won’t stay low for long.

Disclaimer:
This article is intended solely for informational exchange and reference purposes and does not constitute any investment advice or financial guidance. The predictions and calculations listed in the article are based on current market assumptions and are inherently subjective and uncertain. Investing in YT carries inherent risks, including the risk of principal loss, price volatility, and market liquidity, among other uncontrollable factors. Please make your judgments and bear the consequences.

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