Pendle Finance has emerged as a leading force in the decentralized finance (DeFi) ecosystem, carving out a unique niche in the rapidly growing market for yield-based financial instruments. Since its inception, the protocol has evolved from a novel concept into a robust, multi-chain platform powering fixed-yield trading and structured products. With strong fundamentals, expanding integrations, and increasing institutional interest, Pendle is redefining how users interact with tokenized yield.
This article explores Pendle’s market performance, key growth drivers, cross-chain expansion, strategic partnerships, and its pivotal role in shaping the future of yield-bearing assets in 2025.
Pendle’s Key Milestones and Market Growth
Total Value Locked (TVL) Trends
One of the most telling indicators of Pendle’s success is its Total Value Locked (TVL), which reflects both user trust and capital inflow. Since launching in June 2021, Pendle has seen exponential growth in TVL, peaking at an all-time high of $6.72 billion in June 2024. Although it later stabilized, current figures show a resilient TVL of approximately **$4.88 billion**, with multiple sources confirming values over $4 billion.
The majority of this value is anchored on Ethereum, where nearly $4.5 billion is locked—underscoring the chain’s continued dominance in DeFi despite rising gas fees. However, Pendle’s strategic deployment across multiple blockchains highlights its commitment to scalability and accessibility.
Key chains contributing to Pendle’s multi-chain TVL include:
- Base: $180.34 million
- Sonic: $111.78 million
- Arbitrum: $49.9 million
- Berachain: $32.4 million
- Mantle: $12.31 million
- BSC: $4.25 million
Smaller but notable contributions also come from Avalanche and OP Mainnet. This diversified distribution not only reduces network congestion risks but also opens Pendle to new user bases across ecosystems.
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Revenue Generation and Economic Sustainability
Beyond TVL, Pendle’s revenue model demonstrates long-term viability. Since June 2024, the protocol has consistently generated over $4 million in monthly revenue**, translating to an annualized range between **$22.32 million and $42.88 million. This income stems primarily from two sources:
- A 5% fee on yield generated by assets locked in Pendle vaults.
- Trading fees from the exchange of yield tokens.
A critical test of any DeFi project came in September 2024, when team and investor tokens were fully unlocked. Unlike many protocols that experience sharp sell-offs or declining activity post-unlock, Pendle maintained stable revenue and growing utility—evidence of organic demand rather than speculative inflation.
This resilience signals a maturing economic model, reducing concerns about “rug pulls” or sudden capital flight. For investors and institutions evaluating PENDLE token fundamentals, this post-unlock stability strengthens confidence in the protocol’s sustainability.
User Engagement and Daily Active Users (DAU)
User adoption remains a cornerstone of DeFi success. Pendle currently boasts around 280,000 total active users, with approximately 1,000 daily active addresses interacting directly with the protocol.
It's important to note that these numbers reflect only direct interactions—excluding users who access Pendle via DEX aggregators or intermediary smart contracts. Additionally, data is limited to specific supported chains, meaning actual usage may be higher.
Despite conservative reporting, consistent DAU levels amid broader market fluctuations suggest strong retention and real utility—not just short-term farming incentives driving engagement.
Pendle’s Role in the Yield-Bearing Stablecoin Market
Pendle holds a dominant position in one of DeFi’s fastest-growing segments: yield-bearing stablecoins. These are digital assets that automatically accrue interest while held, eliminating the need for active staking or lending.
As of 2025, the total market value of yield-bearing stablecoins has reached $11.3 billion, representing 4.5% of the overall stablecoin market. Within this space, Pendle controls approximately 30% of the supply, making it a top player.
Analysts project Pendle will maintain a 25–30% market share, driven by its early mover advantage and deep integrations with major protocols like Ethena and Aave. Its focus on a relatively stable asset class—stablecoins—has insulated it from some of the volatility seen in other DeFi sectors, contributing to sustained TVL growth.
Cross-Chain Expansion and Ecosystem Growth
Multi-Chain Strategy and Future Roadmap
Pendle’s expansion beyond Ethereum exemplifies its vision for a truly decentralized, accessible financial system. While Ethereum remains central, the protocol has aggressively deployed on Layer 2 solutions and alternative EVM-compatible chains such as Arbitrum, Base, Sonic, and Berachain.
Looking ahead, Pendle plans to integrate with non-EVM ecosystems:
- Solana support expected in Q3 2025
- Future integrations with Hyperliquid and TON
These moves aim to reduce transaction costs, improve speed, and attract users from high-growth ecosystems—particularly those prioritizing low fees and fast settlement.
By embracing a multi-chain future, Pendle ensures it remains at the forefront of DeFi innovation while mitigating risks associated with chain concentration.
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Key Integration: Aave v3 & PT-USDe Collateralization
One of Pendle’s most impactful developments is the integration of PT-USDe as collateral within Aave v3, Ethereum’s largest lending protocol.
This allows holders of Pendle’s fixed-term yield tokens (PT tokens) to use them as collateral for borrowing or leveraged yield farming. Since going live, roughly $1 billion worth of PT-USDe** has been deposited into Aave—complementing an additional **$500 million on Morpho.
This integration significantly enhances capital efficiency and opens new yield strategies for advanced users. More importantly, it embeds Pendle deeper into core DeFi infrastructure, reinforcing its status as a foundational yield layer.
Strategic Partnership with Ethena
Pendle’s collaboration with Ethena has been transformative for both platforms. When Ethena launched its USDe stablecoin in February 2024, it leveraged Pendle to bootstrap initial liquidity and user adoption.
Within just four months, Pendle helped scale Ethena’s issuance from zero to over $3 billion, accounting for 50% of its growth and activity. This was achieved by enabling users to lock USDC deposits for fixed yields without directly interacting with Ethena’s complex minting process.
Furthermore, Ethena’s upcoming Converge blockchain—a KYC-enabled EVM chain—will allow compliant institutional access to Pendle’s yield products. This paves the way for regulated entities to participate in permissioned versions of assets like iUSDe, expanding Pendle’s reach into traditional finance (TradFi).
Permissionless Listings and Emerging Integrations
In March 2025, Pendle took a major step toward decentralization by enabling permissionless asset listings on its marketplace. While official offerings remain under “Pendle Prime,” third parties can now list assets independently—removing bottlenecks and accelerating innovation.
This move supports long-tail stablecoins and niche yield instruments that might otherwise struggle for visibility.
Recent integrations further illustrate ecosystem momentum:
- Falcon Finance integrated $sUSDf with Pendle for enhanced on-chain yield.
- Coinshift’s csUSDL became a top passive income asset on Pendle, reaching $100 million TVL.
- Cygnus Stablecoin (wcgUSD) launched on Pendle, offering new structured yield options.
These partnerships highlight Pendle’s role as a modular yield infrastructure layer—interoperable, composable, and increasingly indispensable.
Frequently Asked Questions (FAQ)
Q: What is Pendle Finance used for?
A: Pendle enables users to trade, hedge, and earn fixed yields on tokenized assets through time-decoupled yield tokens (PT and YT). It’s ideal for those seeking predictable returns or looking to speculate on future yield rates.
Q: Is Pendle available on multiple blockchains?
A: Yes. Pendle operates across Ethereum, Arbitrum, Base, Sonic, Berachain, Mantle, BSC, and others—with plans to expand to Solana, Hyperliquid, and TON in 2025.
Q: How does Pendle generate revenue?
A: Through a 5% fee on yield earned by deposited assets and trading fees from its marketplace—creating a sustainable income stream independent of token emissions.
Q: Can I use Pendle tokens as collateral elsewhere?
A: Yes. PT-USDe is accepted as collateral on Aave v3 and Morpho, allowing users to borrow against their fixed-yield positions or amplify returns via leverage.
Q: Why is Pendle important for yield-bearing stablecoins?
A: It powers a significant portion (30%) of the $11.3B yield-bearing stablecoin market by providing structured products that simplify access to passive income.
Q: Does Pendle support institutional investors?
A: Increasingly yes—especially through its partnership with Ethena’s KYC-enabled Converge chain, which allows compliant institutions to access regulated yield products.
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