Pendle is a DeFi protocol that enables the trading of tokenised future yield — separating yield-bearing assets into two components: the principal (PT, Principal Token) and the yield (YT, Yield Token). This creates a fixed-income market in DeFi, where users can lock in a guaranteed yield rate or speculate on future yield levels. For example, if stETH yields 4% annually, Pendle splits it: PT-stETH represents the right to 1 stETH at maturity; YT-stETH represents all the yield generated until maturity. Users can: buy PT to lock in a known fixed rate (like a bond), buy YT to speculate on yield rising, or provide liquidity to Pendle’s AMM to earn trading fees. Launched in 2021, Pendle remained a niche protocol until the rise of liquid staking and restaking in 2023-24. When EigenLayer points farming began (earning points redeemable for EIGEN tokens), Pendle became the primary venue for yield traders to speculate on point valuations — TVL surged from $200M to $7B+ in 2024. PENDLE is the governance token. Pendle operates on Ethereum, Arbitrum, BNB Chain, Mantle, and other chains. It has pioneered fixed-rate lending in DeFi and become a key infrastructure piece for yield strategies.
Example: You hold weETH (wrapped EigenLayer restaked ETH) earning 8% APR from staking + restaking rewards. You’re unsure if yields will stay high. You sell the YT component on Pendle and lock in 6% fixed APR for 6 months via PT. Now regardless of whether actual yields fall to 3% or stay at 8%, you receive exactly 6% — predictable, bond-like income from a DeFi asset.
Learn more: Pendle Finance
