Pendle Finance
Credit · Fixed Income · PENDLE
Pendle tokenizes yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), creating an on-chain market for fixed-rate yield and yield speculation/hedging. Pendle V2's specialized AMM and vote-escrowed vePENDLE coordinate liquidity across dozens of maturity-dated yield markets, and Boros extends the model to funding-rate trading.
Tokenized yield — split principal and yield (PT/YT).
PENDLE price
$1.48
-1.6% 24h
Latest data · 15 min delay
Research
Components, facts, FAQ, timeline, and tokenomics in one place
Main components (4)
Yield Tokenization (SY / PT / YT)
A yield-bearing asset is wrapped into Standardized Yield (SY, ERC-5115) then split into a Principal Token (PT) and a Yield Token (YT) that trade and redeem independently until maturity.
Pendle AMM
A specialized AMM that trades PT and YT from a single pool, with time-decaying concentrated liquidity tuned to a market's maturity date.
vePENDLE
Vote-escrowed PENDLE (lock up to 2 years) — directs incentive emissions across pools, boosts LP rewards, and earns a share of protocol swap fees and YT yield.
Boros
Funding-rate yield trading with margin via Yield Units (YU); lets users hedge or speculate on perpetual funding rates. Launched Aug 2025 on Arbitrum.
Differentiator
The dominant yield-tokenization market: PT buyers lock a fixed rate, YT buyers go long yield — a true fixed-income primitive for DeFi, with the deepest liquidity and asset coverage in the category.
Organizational structure
Units & roles
- Development
Pendle core team
Founded in 2021 (originally 'Benchmark'); co-founded by TN Lee. The core team builds Pendle V2 and Boros.
- Governance
vePENDLE holders
Vote-escrowed PENDLE holders vote on pool gauges and incentive distribution and steer protocol parameters.
Investment rounds
| Date | Round | Amount | Investors | Link |
|---|---|---|---|---|
| 2021-04 | Seed | $3.7M | Mechanism CapitalCrypto.com CapitalHashKey CapitalSpartan GroupCMS HoldingsBitscale CapitalimToken VenturesLedgerPrimeLemniscapSignum Capital | Source |
Similarity to traditional finance products
How Pendle Finance maps onto established TradFi structures, and where it diverges.
| TradFi product | Similarity to Pendle Finance | Key differences |
|---|---|---|
| Zero-coupon bond / Treasury STRIPS | A PT bought at a discount and redeemed at par at maturity behaves like a zero-coupon bond — a known fixed return over a fixed term. | Fully collateralized, permissionless on-chain markets with no issuer credit; the 'coupon' comes from a DeFi yield source carrying smart-contract and oracle risk rather than a sovereign/corporate issuer. |
| Interest-rate swap (IRS) / floating-rate trading | YT and Boros let users take directional views on floating yield vs a fixed rate, similar to paying/receiving fixed on an interest-rate swap. | Exchange-style, over-collateralized on-chain markets rather than bilateral OTC swaps with counterparty credit exposure. |