Introduction
Founded in mid-2020, the Pendle team set out with a bold vision: to bring fixed-rate yields into the chaotic world of DeFi’s variable APY frenzy. Five years in crypto time feels like an eternity—yet it has passed in the blink of an eye.
Looking back, I’m proud of what we’ve achieved and the challenges we’ve overcome. We’re now positioned stronger than ever to continue our momentum. As the industry evolves, our accumulated expertise places us at the forefront of capturing emerging opportunities in decentralized finance.
This article covers:
- Key milestones in 2024
- The three pillars of Pendle’s growth
- V2 protocol upgrades
- The “Citadels” expansion strategy
- The new Boros project
- Our long-term vision
Pendle V2: 2024 Highlights
Establishing the Fixed-Income Market
2024 marked a turning point for Pendle. We validated strong market demand for fixed-income products and demonstrated the protocol’s ability to scale from millions to billions in value.
At the start of 2023, Pendle’s total value locked (TVL) stood at $230 million. By the end of 2024, it had surged to **$4.4 billion—a 20x increase. Trading volume grew even more dramatically: daily average volume jumped from $1.1 million in 2023** to **$96.4 million in 2024**, nearly a 100-fold rise. As trust in the protocol deepened, it became common to see users holding PT (Principal Token) positions exceeding $100 million.
On June 26, 2024, Pendle executed the largest maturity settlement in its history—seamlessly processing $3.8 billion in maturing positions within days.
In terms of TVL, Pendle now ranks among the top DeFi protocols globally. If measured as a standalone blockchain, Pendle would rank as the fifth-largest, behind only Ethereum, Solana, Tron, and BNB Chain.
👉 Discover how Pendle is redefining decentralized finance with next-gen yield strategies.
Today, Pendle is a blue-chip protocol in the DeFi landscape. On DefiLlama, it dominates over half of the “yield” category. In 2024, we can confidently say: Pendle didn’t just create a niche—it established yield trading as one of DeFi’s largest and most influential sectors.
The DeFi Growth Engine
In 2024, Pendle launched nearly 200 liquidity pools across five major blockchains, offering diverse assets and maturities. With an average of four new markets added per week, we reached a peak of 121 active markets by December—2.5x growth year-over-year.
But this isn’t just about scale. These markets have become foundational liquidity hubs for other protocols.
Pendle has evolved into a launchpad for emerging DeFi ecosystems.
For example:
- At its peak, 48% of Ethena’s TVL flowed through Pendle
- In the BTCfi ecosystem, 42 out of every 100 restaked BTC were deposited via Pendle
- Usual grew from $300 million to $1.2 billion in TVL—30% driven by Pendle integration
Even broader ecosystems like Arbitrum, Zircuit, and Berachain saw significant liquidity boosts thanks to Pendle’s infrastructure.
The PT (Principal Token) market alone has become a $1.2 billion sub-economy, representing 3.3% of total collateral across EVM lending platforms. On Morpho, about 20% of deposits originate from Pendle users.
“Where there is yield, there is Pendle.”
We’ve made massive strides in building the premier yield-trading platform. But our journey is far from over.
The Three Pillars of Global Expansion
V2 Protocol Upgrades
The on-chain yield market is estimated at $17.7 billion**, yet only **$880 million (4.97%) has been “Pendled”—meaning tokenized and tradable via Pendle. While we’ve secured a strong foothold, the opportunity ahead is vast.
To close this gap, V2 introduces three core upgrades:
1. Open Ecosystem
Pendle has always been permissionless at its core. While third-party teams have already built pools on our infrastructure, we’re now opening full UI access—enabling anyone to create and manage yield markets. This dual-track approach—community-driven listings plus strategic partnerships—will accelerate growth.
2. Dynamic Fees
We’re introducing dynamic fee rebalancing to optimize outcomes for liquidity providers, users, and protocol sustainability—especially during volatile rate environments.
3. vePENDLE Enhancements
vePENDLE will evolve beyond weekly voting. We’re expanding access so all users—regardless of stake size—can participate meaningfully. Improving the vePENDLE user journey is now a top priority across all product lines.
V2 is battle-tested and ready to power our next phase of expansion.
Building “Citadels”: The Next Frontier
In 2024, Pendle scaled to billion-dollar territory. Now, we’re aiming for trillion-dollar impact.
Currently, we serve only EVM-based DeFi users. While this market is thriving, we believe Pendle’s potential extends far beyond.
“Where there is yield, there is Pendle.”
Our goal: make Pendle the central experience for any user interacting with yield, regardless of platform or financial system.
While V2 covers just ~5% of DeFi’s yield market, the global interest rate derivatives market is worth $558 trillion—over 30,000x larger. Capturing even a fraction would mean exponential growth.
We’re advancing three “Citadel” initiatives:
1. Non-EVM Expansion
The first Citadel will extend PTs to non-EVM chains like Solana, TON, and HYPE—each experiencing explosive user growth. By offering one-click fixed-yield access, Pendle can onboard millions of new users.
2. TradFi Integration
The second Citadel focuses on compliant products—packaging on-chain yields for regulated institutions. We’re partnering with platforms like Ethena to launch regulated SPVs (Special Purpose Vehicles), allowing traditional finance clients to access crypto-native fixed yields.
3. Shariah-Compliant Finance
The third Citadel targets Islamic finance—a $3.9 trillion global market across 80+ countries. With Shariah-compliant products growing at 10% annually, this presents a major opportunity for ethical yield innovation.
👉 See how Pendle is bridging traditional finance with decentralized yield solutions.
Introducing Boros: Unlocking New Yield Dimensions
The Power to Transform Real-World Finance
As builders who’ve weathered multiple cycles, we know that memes come and go—but real innovation endures. Blockchain’s greatest potential lies in solving real-world inefficiencies: illiquidity, opacity, and exclusion.
Boros is built on this belief: that blockchain can outperform traditional finance where it matters most.
Anchoring the Largest Yield Source
As the leading yield platform, we’ve seen firsthand the explosive demand for yield trading. But Boros takes this further—it enables fixed-rate trading on any yield stream, including DeFi, CeFi, LIBOR, or mortgage rates.
Its first target? Funding rates—the largest untapped yield source in crypto.
The perpetual futures market sees:
- $150 billion in daily open interest
- $200 billion in daily volume (10x spot markets)
- Continuous funding rate flows in a 24/7 market
This dwarfs current spot yield opportunities.
With Boros:
- Ethena can lock in fixed funding rates for stability
- Long traders on high-volatility perps (like TRUMP/USDT) can hedge against crippling funding fees (up to 20,000% APY)
- Arbitrageurs can secure fixed returns on carry trades
Boros works by swapping floating yield streams for fixed ones (or vice versa) until maturity—effectively enabling interest rate swaps on-chain.
This sets a new standard for yield control and optimization.
How PENDLE Fits Into This Vision
As the ecosystem grows through V2, Citadels, and Boros, value will increasingly flow to vePENDLE holders.
In 2024, active vePENDLE stakers earned an average ~40% annualized yield, not including a $6.1 million airdrop distributed in December.
“Where there is yield, there is Pendle—and value flows back to those who build with us.”
The Endgame Vision
Pendle’s mission remains unchanged since day one: to be the leading protocol for yield trading. But as our scale grows, so does our ambition.
Whether you’re a crypto native or a Middle Eastern sovereign fund, Pendle will be your gateway to yield—across DeFi, CeFi, TradFi, and beyond.
Our 2025 roadmap includes bold moves: scaling V2, expanding PT distribution globally, and unlocking Boros’ full potential.
We know not every plan will go smoothly. When obstacles arise, we’ll adapt—just as we have for years.
In a noisy, volatile market, we remain focused: build deeper infrastructure, empower users, and unify the yield layer.
The job isn’t done—but it will be.
Frequently Asked Questions
Q: What is Pendle’s main innovation in DeFi?
A: Pendle pioneered tokenized yield trading by splitting assets into Principal Tokens (PTs) and Yield Tokens (YT), enabling users to trade future yields as standalone assets—bringing fixed-income mechanics to decentralized finance.
Q: How does vePENDLE benefit users?
A: vePENDLE holders gain boosted rewards, voting rights on key protocol decisions, and access to exclusive incentives. In 2024, active stakers earned ~40% annualized returns plus additional airdrops.
Q: What are “Citadels” in Pendle’s roadmap?
A: Citadels are strategic expansion initiatives targeting non-EVM chains, traditional finance (TradFi), and Shariah-compliant markets—aiming to bring Pendle’s yield infrastructure to trillions in global capital.
Q: What problem does Boros solve?
A: Boros enables fixed-rate trading on variable yield streams—like funding rates in perpetual futures—allowing traders and institutions to hedge risk or lock in predictable returns.
Q: Can retail users benefit from Pendle?
A: Absolutely. With user-friendly interfaces and low entry barriers, retail investors can earn fixed yields, hedge exposure, or speculate on rate movements—democratizing access to sophisticated financial tools.
Q: Is Pendle expanding beyond crypto yields?
A: Yes. Through Citadels and Boros, Pendle is integrating traditional financial yields (e.g., LIBOR) and building compliant pathways for institutional adoption—blurring the line between DeFi and TradFi.
👉 Explore how you can start earning predictable yields with cutting-edge DeFi tools today.