DeFi Protocol Pendle Finance Inches Closer to $1B Total Value Locked

UTC by Chimamanda U. Martha · 3 min read
DeFi Protocol Pendle Finance Inches Closer to $1B Total Value Locked
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With its innovative approach to yield generation, Pendle has emerged as a beacon of innovation within the DeFi landscape.

Pendle Finance, a decentralized finance (DeFi) platform known for its innovative approach to yield generation, is on the brink of reaching a monumental milestone of $1 billion in total value locked (TVL).

According to data from  DeFiLlama,  the protocol currently has $998.4 million TVL, with a market capitalization of $281.11 million on Friday.

Pendle’s Token Hits $54.58 Million in Trading Volume

Pendle, launched in early 2021, operates as a pioneering price discovery tool, facilitating the separation of DeFi investments into principal tokens (PTs) and yield tokens (YTs).

This revolutionary model empowers users to trade future yields and principal tokens on the open market, enabling them to speculate on and secure future yield rates.

The project has a native token called PENDLE, which powers all the activities on the platform, including gas fees. Currently, the digital asset is valued at $2.9 with a 24-hour trading volume of $54.58 million and is now on the road to reaching the $1 billion in TVL mark, according to DeFiLlama.

According to a CoinDesk report citing an interview on Telegram, the platform’s developer, RightSide, said the recent surge in interest surrounding Liquid Restaking Tokens (LRTs) has played a pivotal role in driving Pendle’s rapid growth trajectory.

“The influx of interest in Liquid Restaking Tokens] has been the main driver behind Pendle’s recent growth. Pendle is one of the earliest pioneers of LRTfi, offering a unique proposition for users to speculate on EigenLayer yields and points,” said RightSide.

With its innovative approach to yield generation, Pendle has emerged as a beacon of innovation within the DeFi landscape. By empowering users to trade future yields, the platform enables investors to optimize their investment strategies and capitalize on emerging opportunities in the dynamic DeFi market.

Pendle Expansion Moves

Since its inception in 2021, Pendle has diversified its presence across various blockchain protocols to enhance its visibility and attract more users.

Last year, the protocol forged several strategic partnerships with prominent layer 1 blockchains within the industry. In August, Pendle announced its expansion to Arbitrum, providing users with a more sustainable avenue to leverage its yield management solutions.

Moreover, Pendle has collaborated with Aura Finance, Balancer, Lido, and RocketPool to incorporate support for their assets. It has also joined forces with GMX, a decentralized exchange operating on the Arbitrum network, to facilitate support for its native asset.

The protocol also expanded to the Binance Smart Chain (BNB chain) to broaden its horizons further. The move allows users to leverage real-world assets (RWAs) and diversify their investment portfolios.

At the time, Pendle received investment from Binance Labs to grow its platform and extend its reach across various blockchain ecosystems.

In January 2024, the platform expanded to Ondo Finance, a DeFi platform backed by Coinbase.

With these partnerships, the platform is now on the brink of reaching a significant milestone, underscoring the growing acceptance of DeFi solutions as essential elements within the global financial ecosystem.

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