What Pendle Finance does

Pendle Finance is a decentralized finance protocol launched in June 2021 that enables users to tokenize, trade, fix, and speculate on the future yield of yield-bearing crypto assets. Its core product, Pendle V2, splits yield-bearing assets into Principal Tokens (PT), which lock in a fixed yield without lock-up periods or liquidation risk, and Yield Tokens (YT), which represent the variable yield component and can be traded or leveraged. These PT/YT pairs trade on a custom Pendle AMM purpose-built for yield trading with concentrated liquidity and negligible impermanent loss. The protocol is deployed across 9+ blockchains (Ethereum, Arbitrum, BSC, Base, Bera, Sonic, Mantle, Optimism, HyperEVM) via Plasma cross-chain infrastructure, and operates a 30+ partner ecosystem called the Pencosystem that includes money markets (Aave, Morpho, Spark, Euler), yield strategies (yearn, Contango), liquid lockers (Penpie, Equilibria, StakeDAO), and major centralized exchanges (Binance, OKX, Bybit, Coinbase).

In August 2025, Pendle extended its product surface with Boros, an on-chain interest rate swaps primitive that enables traders to hedge or speculate on funding rates across Binance, Hyperliquid, and OKX venues with up to 1000x capital efficiency. The protocol generates revenue through AMM swap fees on PT/YT trading pairs and on Boros funding rate trades. Pendle serves two primary segments: crypto-native DeFi power users seeking to trade, fix, or hedge yield exposure on staked ETH, liquid staking derivatives, and stablecoin yields; and traditional institutional capital seeking access to on-chain yields via Liquid Staking Derivatives and Real World Assets (the protocol publicly disclosed holdings of $468M in STRC digital coins across thirteen markets). The protocol underwent a major tokenomics overhaul in February 2026, replacing its vePENDLE governance model with a liquid staking token (sPENDLE) and an algorithmic incentive system (AIM), cutting emissions by approximately 30%.

Pendle's go-to-market is product-led and community-led: users interact directly with self-serve apps at app.pendle.finance and boros.pendle.finance, with growth driven by community adoption, ecosystem integrations, and educational content. The company is headquartered in Denver, Colorado, operates with 11–50 employees, and has raised $3.5 million in disclosed seed funding led by Mechanism Capital in May 2021, with subsequent undisclosed strategic investments from Binance Labs and Spartan Capital in November 2023.

Name

Pendle Finance

Legal name

Pendle Finance

Website

https://pendle.finance

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

Pendle Finance is a decentralized finance protocol that tokenizes yield-bearing crypto assets into Principal and Yield Tokens, enabling crypto-native users and institutional capital to trade, fix, and hedge on-chain yields across 9+ blockchains.

Ownership category

akta.pro rank

Product category

Decentralized Finance Protocol

NAICS

Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523), Other Investment Pools and Funds (5259), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Finance Services (6199), Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Commodity Contracts Brokers & Dealers (6221)

akta.pro primary industry

Yield, Vaults & Asset Management (vault strategies, robo-vaults, structured yield) (FSAPAEAG)

akta.pro secondary industries

Structured Products & Notes (Yield/Principal-Linked) (FSADAGAD), Perpetuals & Derivatives DEXs (FSADABAE), Treasury Management & Corporate Crypto Yield Programs (FSADAHAL)

Keywords

• Yield tokenization protocol
• Decentralized finance platform
• Interest rate swaps
• Yield trading AMM
• Fixed yield products

Headquarters

HQ city

Denver

HQ country

United States

HQ region

North America

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Infrastructure, Personnel, Marketing or Sales, Operations

Revenue model

1. Trading Fees: Pendle charges trading fees on yield token transactions through its custom AMM. The protocol generates revenue from swap fees on PT and YT trading pairs across all markets.
2. Protocol Fees: Pendle collects protocol-level fees from yield trading activity. The tokenomics overhaul in February 2026 introduced the sPENDLE liquid staking model with algorithmic incentive system (AIM) to redirect rewards based on protocol contributions like TVL and fees generated.

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core offering

Pendle Finance is a decentralized finance protocol that tokenizes yield-bearing assets by splitting them into Principal Tokens (PT) and Yield Tokens (YT), which are traded on a custom AMM. Users can earn fixed yield, speculate on future yield, hedge yield exposure, or trade funding rates via the Boros sub-protocol. The platform operates self-serve across multiple blockchains and is positioned as the world's largest crypto yield trading platform.

Product overview

Pendle Finance is a platform-plus-modules architecture consisting of two core products: Pendle V2 and Boros. Pendle V2 is the flagship yield trading platform that tokenizes yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), enabling users to trade spot yield, earn fixed yield, or take leveraged yield positions without lockups or liquidation risk. Boros, launched in August 2025, is an on-chain interest rate swaps primitive that extends Pendle's capabilities to trading funding rates and other yield instruments with up to 1000x capital efficiency. The Pencosystem serves as an ecosystem integration hub connecting these products with partner DeFi protocols across money markets, yield strategies, liquid lockers, and insurance categories.

Differentiator

Problem solved

Functional benefit

Brands

• Boros: An onchain interest rate swaps primitive for trading funding rate volatility, including shorting and longing funding rates with up to 1000x leverage.
• Pendle V2
• Pencosystem

Products and services

• Pendle V2 Core yield trading platform enabling users to trade spot yield, earn fixed yield, or long yield with leverage without lockups or liquidation risk. Splits yield-bearing assets into Principal Tokens (PT) for fixed yield and Yield Tokens (YT) for yield speculation.
• Boros On-chain interest rate swaps primitive that enables trading of funding rates and other yield instruments with up to 1000x capital efficiency for hedging and speculating on funding rates across Binance, Hyperliquid, and OKX venues.
• Pencosystem Ecosystem hub connecting Pendle with 30+ integrated DeFi protocols across money markets, yield strategies, liquid lockers, insurance, and CEX/Web3 wallets, enabling users to access Pendle's yield products through partner platforms.
• AUSD Yield Pools on Monad Yield pools on the Monad blockchain offering weekly rewards for AUSD stablecoin deposits, supporting the AUSD stablecoin's market growth.

Quantifiable outcome

• 2,442% TVL growth since V2 release
• +3 more outcomes

Named customers7 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration28 records

Feature5 records

Partnerships

Five partnerships are on record, tiered core.

• AavecoreTechnology or IntegrationIntegrated via Pencosystem as a money market partner. Aave is a decentralized non-custodial liquidity protocol where users can participate as suppliers or borrowers, integrated with Pendle's yield ecosystem.
• MorphocoreTechnology or IntegrationMorpho is integrated via Pencosystem as a money market partner — a permissionless and non-custodial lending protocol integrated with Pendle's yield markets.
• GearboxcoreTechnology or IntegrationIntegrated via Pencosystem as a money market partner providing composable leverage, allowing users to margin trade, leverage farm and leverage restake through its permissionless credit layer.
• yearn FinancecoreTechnology or IntegrationIntegrated via Pencosystem as a yield strategy partner — a decentralized suite of products helping individuals, DAOs, and other protocols earn yield on their digital assets.
• HyperliquidcoreTechnology or IntegrationBoros trades funding rates across Hyperliquid venue alongside Binance and OKX. HyperLend is also integrated as a money market on Hyperliquid EVM.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Aave: Largest decentralized money market, integrated via Pencosystem. Pendle routes yield strategies through Aave's liquidity pools, while Aave remains the dominant on-chain lending incumbent.
• dYdX: Established on-chain perpetuals exchange with deep liquidity and order-book trading. Boros competes for the same derivatives trading audience with a narrower product focus.
• Curve Finance: Major stablecoin and yield-focused DEX with deep liquidity. Comparable distribution and yield-adjacent positioning, though Curve's core product is concentrated-liquidity AMM rather than yield tokenization.
• Hyperliquid: Leading on-chain perpetuals venue and one of Boros's reference exchanges for funding rates. Strategic partner and indirect competitor in DeFi derivatives.

Direct peers

• IPOR Labs: On-chain interest-rate derivatives protocol offering interest-rate swaps and fixed-yield products. Closest functional peer to Pendle's Boros sub-protocol.
• Convex Finance: Yield-boosting layer on top of Curve that tokenizes and optimizes DeFi yield via a custom AMM and liquid lockers. Highly comparable architecture and incentive design to Pendle.
• GMX: Decentralized perpetuals exchange with an on-chain order book and capital-efficient design. Boros's funding-rate trading product competes directly with GMX's perps model.
• Element Finance: Earlier pioneer of yield tokenization via PT/YT-style fixed-yield primitives. Closest historical analog to Pendle's core architecture and target customer.
• Morpho: P2P lending layer over Aave/Compound that offers fixed-rate markets and is integrated with Pendle. Direct competitor in fixed-yield on-chain lending, and a partner via Pencosystem.
• Spectra Finance: Yield tokenization protocol that splits yield-bearing assets into Principal and Yield tokens using a similar AMM model. Direct category competitor to Pendle's V2 core product.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• GitHubgithub.com/pendle-finance/pendle-core-v2-public
• Xx.com/pendle_fi
• LinkedInlinkedin.com/company/pendlefinance

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds3 records

Investors23 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pendle Finance