Pendle (PENDLE) is a tokenized yield protocol that allows investors to separate the future yield of an asset from its principal, offering a way to manage investments with more flexibility. The project was founded by TN Lee, GT, YK, and Vu in South Korea and has received $3.7 million in investment from Crypto.com Capital, Bitscale Capital, among others. Since its launch in 2021, Pendle has seen $350 million in trading volume and a total value locked (TVL) of over $130 million.
The platform utilizes a dual-token system, comprising principal tokens (PT) and yield tokens (YT), to facilitate yield trading and improve investment control. Its automated market maker (AMM) is designed to counteract the effects of time decay, ensuring fair asset pricing and maintaining liquidity.
Pendle's governance model revolves around PENDLE tokens, which allow holders to stake for vePENDLE, influencing the platform's development and benefiting from yield accrual fees. Pendle Pro offers an accessible interface for users at all levels to engage with yield tokenization and trading.
The protocol emphasizes yield tokenization, separating yield from the principal, which supports advanced trading strategies like interest rate swaps. Its AMM uniquely addresses time decay, aiming to optimize capital efficiency and yield exposure.
