Pendle Finance cemented its leadership in DeFi’s fixed-income market in 2024, hitting $5.1 billion in TVL and a 100x surge in trading volume. The 2025 roadmap outlines ambitious expansions—V2 refinements, Citadels ecosystem growth, and Boros yield-hedging contracts—to bridge TradFi and Islamic finance, positioning Pendle as the core of global yield markets.
Pendle’s 2025 Vision: Scaling DeFi Yield Trading
Co-founder TN’s 2025 Roadmap highlights Pendle’s 2024 breakthroughs in fixed-income markets and yield trading innovations. Below, we break down key developments.
2024 Milestones
Fixed-Income Market Dominance
- TVL Growth: Soared 20x from $230M (2023) to **$5.17B** (2024).
- Yield Market Share: Commands 50%+ of DeFi’s yield sector (DefiLlama).
- Trading Volume: Peaked at **$964M daily** (vs. $1.1M in 2023).
- Notable Settlement: $3.8B in liquid restaking derivatives (June 2024).
DeFi’s Liquidity Backbone
Pendle powers protocols like:
- Stablecoins: Ethena, Usual
- L2s: Arbitrum
- Yield Platforms: Zircuit
- Chains: Berachain
Its Principal Tokens (PTs) form a $1.2B economy, representing 3.3% of EVM lending collateral.
👉 Explore Pendle’s partner integrations
Three Strategic Pillars for 2025
1. Pendle V2 Upgrades
With $17.7B in on-chain yields (only 4.97% traded via Pendle), V2 focuses on:
- Open Market Creation: No-code UI for users to launch yield markets.
- Dynamic Fees: Auto-balances LP/user/protocol incentives.
- vePENDLE Enhancements: Broader voter participation and yield distribution.
2. Citadels Initiative: Expanding Markets
Targeting multi-trillion-dollar markets:
- Non-EVM Chains: Solana, TON, HYPE.
- TradFi: KYC-compliant products for institutions.
- Islamic Finance: $3.9T market-compliant yield tools.
3. Boros: Yield Hedging via Perpetuals
Addresses gaps in perps market hedging:
- Converts volatile funding rates to fixed rates, stabilizing returns.
- Mitigates risks like extreme funding (e.g., TRUMP/USDT contracts).
The Endgame: Global Yield Infrastructure
Pendle aims to unify DeFi investors, institutions, and sovereign funds under one yield management platform.
FAQ Section
Q: How does Pendle’s PT system work?
A: PTs tokenize future yield, allowing traders to buy/sell fixed-rate returns.
Q: What’s unique about Boros?
A: It’s DeFi’s first yield-hedging tool for perps, stabilizing funding rate risks.
Q: Will Pendle support non-EVM chains?
A: Yes—Solana, TON, and HYPE integrations are planned under Citadels.
Q: How does dynamic fee adjustment benefit LPs?
A: It optimizes rewards based on real-time liquidity demand.