In the rapidly evolving landscape of decentralized finance (DeFi), few protocols have demonstrated as much momentum and strategic foresight as Pendle. As we pass the midpoint of 2025, Pendle has firmly established itself as a cornerstone of the yield economy, achieving record-breaking metrics while positioning itself at the forefront of the next major DeFi narrative: stablecoin-driven fixed income.
With its Total Value Locked (TVL) reaching an all-time high of $5.29 billion, Pendle has grown by 23% since the beginning of the year and now commands 58% of the yield protocol market share. This growth is not just numerical—it reflects a fundamental shift in how users interact with on-chain yield, treat risk, and plan long-term financial strategies in Web3.
👉 Discover how Pendle is redefining fixed income in DeFi—click here to learn more.
The Rise of Pendle: A New Era for On-Chain Yield
Pendle’s success stems from its innovative approach to yield tokenization. By separating future yield from principal through its Principal Tokens (PTs) and Yield Tokens (YTs), Pendle enables users to trade, hedge, or leverage interest rates—functions traditionally reserved for traditional finance.
In the first half of 2025 alone, Pendle facilitated over $7.8 billion in maturing vaults, a 25% increase compared to the peak "points farming" frenzy of H1 2024. Despite large-scale maturities, TVL continues to rise—indicating strong user retention and consistent reinvestment behavior. This reflects a maturing ecosystem where users are no longer chasing short-term incentives but are building sustainable yield strategies.
Every PT and LP swap executed smoothly during this period, reinforcing Pendle’s reliability as a crypto fixed-income exchange.
Stablecoins Take Center Stage in DeFi
One of the most defining trends of 2025 is the surge in stablecoin-centric DeFi activity. Over 87% of Pendle’s TVL is denominated in stablecoins, underscoring its role as foundational yield infrastructure for capital-preserving strategies.
This dominance aligns perfectly with broader macro trends:
- The passage of the GENIUS Act has paved the way for regulated stablecoin issuance in the U.S.
- Major corporations like Amazon, Walmart, and Revolut are actively exploring their own stablecoin initiatives.
- Institutional investors are increasingly seeking predictable, low-volatility returns in a post-hypergrowth crypto era.
Pendle sits at the intersection of these forces, offering a robust platform where stablecoin holders can lock in fixed yields, speculate on rate movements, or provide liquidity with enhanced capital efficiency.
Just as Pendle previously empowered narratives around Liquid Staking Tokens (LSTs), Liquid Restaking Tokens (LRTs), and BTCfi, it is now doing the same for stablecoin DeFi—positioning itself as the go-to protocol for yield optimization in a dollar-denominated crypto economy.
Powering Liquidity Across Major Protocols
Pendle isn’t just growing in isolation—it’s fueling the growth of other leading protocols.
- Ethena: Approximately 50% of Ethena’s TVL is attributed to Pendle-based strategies, where users hedge or amplify their synthetic yield exposure.
- OpenEden: After launching its first pool on Pendle in early April, OpenEden’s TVL surged nearly 4x, demonstrating strong product-market fit.
- Today, Pendle holds over 70% of the total USDO supply, cementing its role as a critical liquidity hub for emerging yield-bearing assets.
Beyond external integrations, Pendle’s native financial system has undergone significant expansion. Since the Zenith upgrade, the value of PTs used as collateral across lending platforms has doubled—from $1.2 billion to $2.5 billion—in just four months. Its share of total collateral in lending protocols has risen from 3.3% to 5%, signaling growing trust and adoption.
Moreover, Pendle has laid the groundwork for LP tokens as collateral, with Silo Finance becoming the first platform to integrate this feature. Unlike PTs, LP tokens allow users to retain exposure to potential upside (e.g., point accrual or trading fees) while still unlocking liquidity—a crucial innovation for advanced yield farmers.
Accelerating cross-protocol adoption of LP collateral remains one of Pendle’s key priorities for the remainder of 2025.
Scaling User Adoption and Community-Led Growth
User engagement on Pendle has exploded:
- Over 70,000 new users joined in the past six months.
- Trading volume exceeded $16 billion during the same period.
This surge has been amplified by the launch of Pendle Portal, a permissionless deployment tool that empowers communities to create and manage their own yield pools. To date, 150 pools have been deployed via Portal—an increase of 114% year-over-year—highlighting the power of decentralized innovation.
As Pendle expands access to this functionality, organic growth is expected to accelerate further, driven by community builders rather than centralized teams.
👉 See how decentralized yield farming is evolving—explore Pendle’s ecosystem today.
Rewards Flowing to vePENDLE Holders
The benefits of Pendle’s growth are being directly captured by long-term stakeholders. vePENDLE holders have earned $13.1 million in fees over the past six months—a 66% increase from H1 2024.
These revenues include:
- Protocol-generated trading fees
- Incentives from partner integrations
- Airdrop allocations distributed through gauge voting
With upcoming launches like Citadels and Boros, new revenue streams—from cross-chain yield routing to leveraged rate speculation—are set to further boost returns for vePENDLE stakers.
What’s Next for Pendle in 2025?
Several catalysts are poised to drive Pendle’s next phase of growth:
1. Fed Rate Cuts Fuel Demand for Fixed Yield
As the U.S. Federal Reserve shifts toward a dovish monetary policy, investors may flock to DeFi seeking higher yields than traditional savings instruments offer. Stablecoin PTs allow users to lock in attractive fixed rates before rates decline, making them a strategic hedge against falling yields.
2. Boros: Entering Final Stress Test Phase
Pendle’s Boros upgrade is nearing completion, introducing support for funding rate yield speculation—a powerful tool for traders looking to profit from volatility in perpetual futures markets without holding underlying assets.
3. Citadel Launches Enable Cross-Chain Access
The first Citadels are going live, enabling Pendle PTs to be used on non-EVM blockchains. This breaks down interoperability barriers and opens Pendle’s yield engine to ecosystems like Solana, Cosmos, and Bitcoin Layer 2s.
Frequently Asked Questions (FAQ)
Q: What is Pendle’s core innovation in DeFi?
A: Pendle pioneers yield tokenization by splitting assets into Principal Tokens (PTs) and Yield Tokens (YTs), allowing users to trade or hedge future yield—similar to bonds in traditional finance.
Q: Why is stablecoin dominance important for Pendle?
A: With over 87% of TVL in stablecoins, Pendle serves as critical infrastructure for risk-averse investors seeking predictable returns in volatile markets—aligning with institutional-grade DeFi demand.
Q: How does vePENDLE generate revenue for holders?
A: vePENDLE holders earn a portion of protocol fees and receive boosted rewards through gauge voting, with additional income expected from upcoming features like Citadels and Boros.
Q: Can I use Pendle without deep DeFi knowledge?
A: Yes—while advanced strategies exist, Pendle offers simple vaults for beginners to earn enhanced yields on stablecoins or staked assets with minimal complexity.
Q: Is Pendle expanding beyond Ethereum?
A: Yes—through Citadels, Pendle is enabling cross-chain usage of PTs, bringing its yield solutions to non-EVM networks including Solana and Cosmos-based chains.
Q: What makes Pendle different from other yield aggregators?
A: Unlike aggregators that optimize routing, Pendle creates new financial instruments (PTs/YTs) that enable fixed-income markets, hedging, and speculative trading—all within a single protocol.
👉 Start earning fixed yields on your stablecoins—join the future of DeFi now.
As DeFi matures, protocols that deliver real utility—not just incentives—will lead the next cycle. Pendle has proven it can adapt, scale, and innovate at pace. With stablecoins becoming the backbone of on-chain finance and demand for predictable yield rising, Pendle isn’t just participating in the trend—it’s leading it.