Pendle is an interest rate derivatives protocol built on Ethereum and Avalanche. It allows users to deposit their income certificates into the Pendle protocol, mint ownership tokens OT and income tokens YT, and trade YT tokens in the AMM pool provided by Pendle to lock in future income in advance.

The main features of Pendle include:

1. **Income tokenization**: Pendle innovatively tokenizes income assets into SY tokens, tokenizes according to the ERC-5115 standard, and divides SY into principal tokens PT and income tokens YT.

2. **Pendle AMM**: Both PT and YT can be traded through Pendle's AMM, which is Pendle's core engine. On Layer2, the oracle used by the project is Redstone.

3. **VePendle**: Pendle also introduced VePendle governance tokens, holders can participate in protocol governance and receive rewards based on locked PENDLE tokens.

4. **Investment background**: The Pendle team has raised funds twice, with a total amount of US$15.53 million. In April 2021, Pendle announced the completion of a $3.7 million institutional round of financing, led by Mechanism Capital. In April of the same year, a round of crowdfunding was completed through Balancer, raising a total of 433,787 ETH, with the currency price at the time equivalent to approximately $11.83 million.

5. **Product and business situation**: Pendle's products and business situation include official website data, social media data, and community data. Pendle's V3 version is scheduled to be launched in 2024 and will include interest rate derivatives of traditional finance.

6. **Market space**: Interest rate derivatives account for 80% of the market share of the derivatives track. As a pioneer in the on-chain interest rate derivatives track, Pendle has huge market space.

7. **Liquidity providers**: Liquidity providers can earn investment income and PENDLE token incentives by injecting funds into Pendle's liquidity pool.

8. **User roles**: Users of the Pendle platform can be interest rate derivatives investors, liquidity providers, and VePENDLE governance participants.

9. **Token Economic Model**: Pendle's token economic model supports the price of coins by reducing the supply of circulating tokens, attracting LPs to increase the scale of the platform, and improving user loyalty and protocol stability.

On-chain interest rate swaps are a new concept that emerged in this cycle. There are so many things that can be done through Pendle. Locking in stable returns is the most typical way, so ENA and Pendle are new protocols that can work together perfectly, and they are optimistic in the long run.