Pendle was outperforming until June (while the market was going down) and it has now been cooling off.
I’m still looking for some strong deFi coins and Pendle seems quite interesting!
🔹What’s Pendle fi?
Pendle FI turns yield into a tradable asset, giving users total control over their returns.
Instead of being at the mercy of market swings, Pendle lets users split yield-bearing tokens into two parts: the principal and the future yield.
This opens up powerful strategies—lock in fixed returns, amplify gains during bull markets, or shield yourself from downturns.
By making yield flexible, Pendle empowers users to tailor their strategies and seize opportunities with precision in the dynamic world of DeFi.
For example, with stETH, you can lock in fixed yields for stability, go long on yield to ride the upswing, or short it by selling YT to hedge against drops.
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You can also boost returns by providing liquidity, earning extra rewards without added risk.
For shorting yield, Pendle’s Zap feature lets you enter liquidity pools (LP), holding PT, while earning PENDLE incentives and swap fees.
Switching from long to short is simple—sell YT for LP instead of PT.
This flexibility gives you total control over your yield strategy, even when markets turn bearish.
Note that Pendle Finance is currently deployed on Ethereum, Arbitrum, BSC, Optimism and Mantle.
🔹Pendle Adoption
Pendle is quite interesting as it’s showing promising signs of adoption.
The ratio marketcap vs TVL ratio is something I like to look for when I study an app: there around $2.35 billion staked on Pendle protocol for a $420 million marketcap per Defillama
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Again according Defillama, Pendle collects up to $8.36 million as and derivates $8.09 million of revenues from those fees.
Regarding Pendle token, 154 million of them are staked – representing around 35% of the market cap.
Pendle currently generates up to $30 million in daily trading volume, which is quite promising given the current market sentiment.
I anticipate trading volumes will increase once the market recovers.
Most of Pendle’s volume occurs on the Ethereum chain, highlighting its significant growth potential on other networks, especially Optimism, Mantle, and Arbitrum.
I believe a Layer-2 season is still on the horizon, which could significantly boost Pendle’s adoption.
🔹Funding
Pendle FInance raised up to $3.7 million to date.
Binance Labs is one of the backers. The latest funding round took place in August 2023.
Based on what I see, the $3.7 million don’t include the Binance Labs round.
For this one, no amount was communicated.
🔹Team
Team Pendle was co-founded by TN Lee, Vu Nguyen, GT, and YK, leveraging their expertise in blockchain and decentralized finance.
Originally launched as Benchmark in 2020, the team set out to create a platform for separating and trading future yield from yield-bearing tokens.
TN Lee led the project’s strategic direction, with Vu Nguyen handling the technical infrastructure, while GT and YK focused on expanding the protocol across multiple blockchains.
🔹My opinion
$PENDLE stands out as a strong DeFi contender. The platform offers an innovative product and shows impressive metrics, particularly when comparing its market cap to TVL and daily volume.
Pendle is already deployed on major Layer-2 networks like Arbitrum, Optimism, and Mantle—each of which is experiencing significant growth in adoption.
I’m adding it to my top DeFi picks!
