Pendle: everything you need to know about PENDLE

What is Pendle?

Pendle is a unique platform that allows users to trade in the future yields of yield-generating assets. This means that you can trade the future yields of your crypto investments today, providing more flexibility in managing your passive income sources.

How does Pendle work?

Pendle works by splitting yield-generating assets into two components: the underlying value and the future revenue (yield). These components can then be traded separately. This creates a market where users can sell or buy their future returns, depending on their market expectations.

The PENDLE token

Pendle has a native token called PENDLE. This token is used for governance (voting on decisions within the network), staking, and as a means to pay transaction fees within the platform. The PENDLE token plays a crucial role within the ecosystem, as it also incentivizes users to contribute to the liquidity pools.

The technology behind Pendle.

The technology of Pendle revolves around the concept of 'time decay', in other words, the passing of time. Pendle utilizes smart contracts to separate the future yields of an asset from its underlying value. This enables users to trade flexibly based on their expectations of future market conditions.

The Pendle ecosystem

The Pendle ecosystem consists of multiple components, including liquidity pools, yield tokens, and the Pendle DEX (decentralized exchange). Users can deposit their yield-generating assets into the liquidity pools, earning rewards in the form of PENDLE tokens. The Pendle DEX allows users to freely trade these tokens, enabling them to optimize their exposure to yield.

Benefits of Commuting

• Flexibility: Users can trade in future revenues.
• Passive income: The platform offers opportunities to generate passive income.
• Innovative: Pendle is one of the few platforms that applies the concept of future-oriented yields in DeFi.

Disadvantages of Commuting

• Complexity: For new users, the concept of trading future revenues can be complicated.
• Risks: Just like with all DeFi projects, there are risks associated with smart contract failures and market volatility.

Who is the founder of Pendle?

Pendle was founded by TN Lee. The team consists of a mix of professionals with expertise in finance, blockchain technology, and software development.

Expectations for the near future

Experts expect a minimum exchange rate of €15.55 in 2026 and a minimum exchange rate of €51.52 in 2031.

Frequently asked questions