Pendle is a decentralized finance protocol that lets users tokenize and trade future yield. It launched in 2021 and operates on Ethereum as well as several other blockchain networks.
PENDLE is the protocol's native token, used for governance and reward distribution. Pendle is widely seen as a leading project in yield trading, treating interest income as a standalone asset.
Pendle wraps yield-bearing assets into a standardized format (SY) and splits them into a Principal Token (PT) and a Yield Token (YT). PT can be redeemed for the underlying asset at maturity and behaves much like a fixed-yield position, while YT collects the variable yield until maturity.
These tokens trade on an AMM designed for assets whose value changes over time. This lets users lock in a rate in advance or express a view on future yield changes.
Data provided by CoinGecko
For years Pendle used a vePENDLE model in which PENDLE could be locked for up to two years, but in early 2026 it moved to sPENDLE, a liquid staking token. sPENDLE has a short withdrawal period, and the design directs part of protocol revenue to PENDLE buybacks while reducing emissions.
On the ecosystem side, Pendle launched Boros, a venue for trading perpetual futures funding rates. A wide range of yield sources, including stablecoins, liquid staking tokens and real-world asset products, are connected to Pendle.
Pendle is credited with bringing new interest rate tools to DeFi by letting users turn variable yield into fixed yield or trade yield itself. Its support for multiple chains and diverse assets is another notable feature.
Risks include smart contract vulnerabilities, risks in the underlying protocols, thin liquidity and the price volatility of YT. Because the mechanics are complex, users should understand them well before participating, and this overview is not investment advice.
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