What is Pendle?
Pendle is a DeFi protocol that enables the tokenization and trading of future yield. It splits yield-bearing tokens into principal tokens (PT) and yield tokens (YT), allowing users to trade yield exposure separately.
This innovative approach lets users lock in fixed yields on DeFi positions or speculate on future yield rates. Pendle has become a key infrastructure for yield trading across multiple chains.
PENDLE is the governance token used for voting on protocol parameters, gauge weights (directing incentives to specific pools), and fee distribution. vePENDLE holders earn a share of protocol revenue.
PENDLE Tokenomics
PENDLE has a maximum supply of 258 million tokens with emissions decreasing by 1.1% per week. vePENDLE holders receive 80% of swap fees from voting pools and 3% of all yield collected by YT.
PENDLE Historical Price Performance
PENDLE launched in 2021 but gained massive traction in 2024 during the points and airdrop meta. TVL surged from $20M to $6.7B as users used Pendle to maximize yield and points farming strategies.
Frequently Asked Questions
Pendle splits yield-bearing tokens (like stETH or aUSDC) into two parts: PT (Principal Token) representing the underlying asset at maturity and YT (Yield Token) representing the yield until maturity.
By buying PT at a discount and holding to maturity, you lock in a guaranteed fixed yield. For example, buying PT-stETH at 0.95 ETH means you receive 1 ETH at maturity — a ~5.3% fixed return.
vePENDLE is vote-escrowed PENDLE obtained by locking PENDLE tokens. vePENDLE holders direct liquidity incentives to pools, earn boosted yields, and receive 80% of swap fees from voted pools.
Pendle's growth in 2024 was driven by the points farming meta. Users used Pendle's YT tokens to maximize points from protocols like EigenLayer and Ethena, creating massive demand for yield trading.
How does yield tokenization work?
Pendle splits yield-bearing tokens (like stETH or aUSDC) into two parts: PT (Principal Token) representing the underlying asset at maturity and YT (Yield Token) representing the yield until maturity.
What is a fixed yield on Pendle?
By buying PT at a discount and holding to maturity, you lock in a guaranteed fixed yield. For example, buying PT-stETH at 0.95 ETH means you receive 1 ETH at maturity — a ~5.3% fixed return.
What is vePENDLE?
vePENDLE is vote-escrowed PENDLE obtained by locking PENDLE tokens. vePENDLE holders direct liquidity incentives to pools, earn boosted yields, and receive 80% of swap fees from voted pools.
Why did Pendle grow so fast?
Pendle's growth in 2024 was driven by the points farming meta. Users used Pendle's YT tokens to maximize points from protocols like EigenLayer and Ethena, creating massive demand for yield trading.
Risk Warning
Cryptocurrency prices are highly volatile and can change rapidly. The information on this site is provided for informational purposes only and does not constitute financial, investment, or trading advice.