Draft:Pendle (software)
Decentralized yield-trading protocol on Ethereum and other blockchains
From Wikipedia, the free encyclopedia
Pendle is a decentralized finance protocol that allows users to trade the future yield of various yield-bearing cryptocurrency assets operating on Ethereum and several compatible networks. The protocol splits a yield-bearing asset into two separate tokens, a Principal Token (PT), representing the underlying asset, and a Yield Token (YT), representing future yield, which can then be traded independently through an Automated Market Maker (AMM).[1][2]
 | Review waiting, please be patient.
This may take 8 weeks or more, since drafts are reviewed in no specific order. There are 3,109 pending submissions waiting for review.
Where to get help
How to improve a draft
You can also browse Wikipedia:Featured articles and Wikipedia:Good articles to find examples of Wikipedia's best writing on topics similar to your proposed article. Improving your odds of a speedy review To improve your odds of a faster review, tag your draft with relevant WikiProject tags using the button below. This will let reviewers know a new draft has been submitted in their area of interest. For instance, if you wrote about a female astronomer, you would want to add the Biography, Astronomy, and Women scientists tags. Editor resources
Reviewer tools
|
Submission declined on 15 March 2026 by Pythoncoder (talk).
Where to get help
How to improve a draft
You can also browse Wikipedia:Featured articles and Wikipedia:Good articles to find examples of Wikipedia's best writing on topics similar to your proposed article. Improving your odds of a speedy review To improve your odds of a faster review, tag your draft with relevant WikiProject tags using the button below. This will let reviewers know a new draft has been submitted in their area of interest. For instance, if you wrote about a female astronomer, you would want to add the Biography, Astronomy, and Women scientists tags. Editor resources
This draft has been resubmitted and is currently awaiting re-review. |  |
 | The following Wikipedia contributor may be personally or professionally connected to the subject of this page. Relevant policies and guidelines may include conflict of interest, autobiography, and neutral point of view.
|
| Pendle | |
|---|---|
| Developers | Pendle (TN Lee, Vu Nguyen, and co-founders) |
| Initial release | June 16, 2021 |
| Stable release | V2
/ November 29, 2022 |
| Operating system | Ethereum, Arbitrum, BNB Chain, Mantle, Optimism, Plasma, Base, Berachain |
| Platform | Decentralized finance |
| Type | Yield trading, interest rate derivatives |
| Website | pendle |
The protocol is described as an on-chain equivalent of interest rate derivative markets, which represent an estimated $400 trillion segment in traditional finance.[3] As of August 2025, Pendle's Total Value Locked (TVL) reached US$8.3 billion.[4]
History
Pendle was founded under the working name Benchmark in late 2020 by TN Lee, Vu Nguyen, and two pseudonymous co-founders GT and YK.[5] TN Lee had previously worked as Head of Business at Kyber Network.[6]
In April 2021, the project raised US$3.7 million in a seed round led by Mechanism Capital, with participation from HashKey, Crypto.com, Spartan Group, Alliance DAO, and others.[7] The protocol launched on Ethereum on June 16, 2021, initially supporting yield tokens for Aave and Compound's assets.[7]
The latest version Pendle V2, launched on November 29, 2022, introducing a new automated market maker (AMM) design and the Standardized Yield (SY) token standard.[2]
In 2024, Pendle's total value locked grew from approximately US$230 million to US$4.4 billion, driven largely from liquid restaking (LRT) protocols built on EigenLayer.[8][9] Users traded PT and YT positions on restaking assets from various protocols such as Ether.fi, Renzo, and Kelp DAO for their "points" ahead of anticipated token airdrops.
In August 2025, Pendle launched Boros, a platform for trading perpetual futures funding rates as on-chain yield instruments.[10] Boros accumulated over US$7 billion in notional trading volume in its first months of operation, with open interest peaking at approximately US$250 million.[11][12]
Protocol
Pendle V2 uses a Standardized Yield (SY) wrapper that converts any yield-bearing token to be trade in Pendle's AMM. From the SY token, the protocol mints two instruments: a Principal Token (PT) redeemable 1:1 for the underlying asset at a fixed maturity date, and a Yield Token (YT) entitling the holder to all yield generated until maturity date.[2]
PT tokens trade at a discount before maturity, since the yield component has been stripped out. Holding PT to maturity produces an implicit fixed-rate bond equivalent to the purchase discount, comparable to a zero-coupon bond.[13] YT loses value as maturity approaches since less future yield remains to be collected.
The protocol's AMM is designed specifically for yield-bearing tokens, incorporating a time-decay function that adjusts pricing as maturity nears. It routes YT trades through a flash-swap mechanism within the same SY–PT liquidity pool, rather than maintaining separate pools for each token type.[2]
PENDLE token
PENDLE is the protocol's governance and incentive token, with a total supply capped at 281,527,448.[14] At launch, the supply was distributed as approximately 65% circulating, 19% to an ecosystem fund, 10% to protocol incentives, and 6% to the team. The protocol has a terminal inflation rate of 2% per year.
From 2021 to January 2026, governance rights were held through vePENDLE, a vote-escrowed version of the token modelled on Curve's veToken system. Holders could lock PENDLE for up to two years in exchange for voting power, boosted yield, and a share of swap fees. Participation remained below 20% of circulating supply throughout, which the team attributed to the complexity of multi-year lockups.[15]
In January 2026, Pendle replaced vePENDLE with sPENDLE, a liquid staking token with a 14-day withdrawal period or instant exit for a 5% fee.[15][16] The transition directed over 80% of protocol revenue to sPENDLE holders through PENDLE buybacks and reduced emissions by approximately 30% through an algorithmic allocation model.
Real-world assets
Pendle has been used to trade yield from several tokenized real-world asset protocols. Its integrations include MakerDAO's sDAI, which holds U.S. Treasury-backed reserves, and fUSDC from Flux Finance, which is backed by Ondo Finance's tokenized Treasury fund OUSG.[17] The protocol has also been used to trade yield on Ethena's sUSDe, a synthetic dollar that generates returns through delta-neutral derivatives positions.[18]
The broader tokenized RWA market exceeded US$24 billion in mid-2025, according to industry data.[17]
Reception
Pendle attracted limited usage following its 2021 launch and through most of 2022.[19] Growth accelerated sharply in early 2024 as users sought fixed-rate exposure to restaking yields and LRT airdrop points.[8] By mid-2024, Pendle ranked among the largest DeFi protocols by TVL, as tracked by DeFiLlama and Messari.
The protocol recorded approximately US$40 million in annualized protocol revenue and around 280,000 active users as of mid-2025, based on on-chain fee data.[20] CoinDesk and Blockworks have covered the protocol's growth in the context of the broader expansion of on-chain fixed-income markets.[4][21]
LLM-generated pages with the below issues may be deleted without notice.
These tools are prone to specific issues that violate our policies:
Instead, only summarize in your own words a range of independent, reliable, published sources that discuss the subject.
See the advice page on large language models for more information.