Introduction to PENDLE Project
PENDLE is a decentralized yield trading protocol operating on Ethereum, dedicated to creating an open, transparent, and permissionless financial market. Its core innovation lies in tokenizing the future cash flows of yield-bearing assets, allowing users to split yield assets into principal tokens (PT) representing the principal and yield tokens (YT) representing future earnings, thereby enabling early trading and management of yields, providing users with innovative yield management tools and trading strategies.
PENDLE Token Economic Model
- Total Supply: 500 million PENDLE.
- Initial Circulating Supply: When the PENDLE token was launched in April 2021, its initial circulating supply was 8 million, accounting for 1.6% of the total supply.
- Distribution Mechanism: 40% of PENDLE is allocated for staking rewards; 15% for liquidity mining over the next few years; 10% allocated to the treasury; 10% for strategic partnerships; 10% allocated to team members; 10% for early supporters; 5% allocated to the ecosystem fund.
- Token Release Mechanism: Starting from April 2021, the initial 26 weeks will release 1.2 million PENDLE weekly; from the 27th week to the 260th week, the weekly release amount will decrease by 1%; starting from the 261st week, the annual inflation rate will be 2%. As of September 2024, all team and investor tokens have been fully unlocked, and the current increase in circulating supply comes only from incentives and ecosystem development.
- vePENDLE Mechanism: Users can lock PENDLE tokens to obtain vePENDLE (voting-escrowed PENDLE). The longer the locking period, the more vePENDLE is obtained. Users holding vePENDLE can earn a portion of the protocol's revenue and participate in governance decisions, such as voting on revenue distribution.
Recent Positive Developments for PENDLE
- Market Performance and Growth Potential: PENDLE's Total Value Locked (TVL) grew from approximately $15 million at the beginning of 2023 to about $4.5 billion in April 2024, a growth of 300 times. At the beginning of January 2023, PENDLE's price was around $0.05, reaching $1.2 by the end of 2023, and hitting $7 at the beginning of April 2024.
- Record High Trading Volume and Protocol Revenue: On March 27, 2025, PENDLE's single-day trading volume exceeded $500 million, setting a historical record, while its annualized protocol revenue reached $120 million.
- Ecosystem Collaboration and Expansion: PENDLE has partnered with several well-known DeFi projects such as Lido, Frax, Rocketpool, etc., to jointly build a vast DeFi ecosystem. In addition, PENDLE plans to expand to more blockchain ecosystems like Solana, further broadening its application scope and user base.
- New Features and Product Launches: PENDLE has introduced a new USD-PENDLE farm, providing users with richer earning opportunities. Meanwhile, PENDLE is developing cross-chain capabilities to enhance its accessibility and usability across different blockchain networks.
Market Performance and Analysis
As of May 31, 2025, PENDLE's circulating supply is 235,500,000, with a circulating market capitalization of $401,400,000 and a fully diluted market capitalization of $713,500,000. Its price has shown some volatility recently but has an overall upward trend, such as a 15% short-term surge on May 17, bringing the price close to $4.30, with expectations of challenging the $5 mark. In terms of trading volume, PENDLE's trading activity is high, indicating significant market interest and trading enthusiasm.
Project Advantages
- Innovative Yield Trading Model: PENDLE's mechanism for splitting and tokenizing yield assets provides users with a brand new way to manage and trade yields, allowing users to participate in and manage yield trading more flexibly, meeting the risk preferences and investment needs of different users.
- Strong Community and Ecosystem: PENDLE has a large and active community, with members actively participating in project discussions, feedback, and support. Additionally, it has established strategic partnerships with several well-known blockchain projects, exchanges, and DeFi protocols, providing strong support for the project's development.
- Professional Team and Governance Structure: The team members of PENDLE possess rich experience in blockchain technology and the financial sector, enabling continuous optimization of the protocol's functionality and performance. The vePENDLE governance model incentivizes users to actively participate in the governance and development of the protocol, ensuring decentralization and sustainable development.
Future Outlook
With the continuous maturity and development of the DeFi market, PENDLE is expected to maintain its leading position in the DeFi sector through its innovative yield trading model and robust ecosystem. Additionally, with the influx of institutional investors and the application of new technologies, the development prospects for PENDLE will be even broader. However, factors such as market competition and regulatory policies will pose certain challenges for its development, and PENDLE needs to continuously innovate and improve itself to address various challenges and achieve sustainable development.
