Pendle (PENDLE)

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Pendle is a DeFi protocol that turns future yield into something you can trade. It takes a yield-bearing asset — say, a staked-ETH token that earns interest — and splits it into two parts: a principal token (the underlying value) and a yield token (the future income stream). This lets users do things normally reserved for traditional finance: lock in a fixed rate, speculate on whether yields will rise or fall, or hedge their exposure.

For people who want predictability, Pendle offers fixed yields; for traders, it offers a way to bet on interest rates moving. It became especially popular during the 'points' and airdrop-farming era, when users wanted to maximize or lock in yields from new protocols. The PENDLE token is used for governance and can be staked as sPENDLE, which replaced the older multi-year vePENDLE locks in January 2026: stakers can withdraw after 14 days, and most protocol revenue funds PENDLE buybacks distributed to them.

Pendle is widely seen as the leading on-chain market for fixed income and yield trading, a category that barely existed in DeFi before it. For newcomers, think of it as a marketplace where the interest an asset will earn can itself be bought and sold.