Pendle Finance protocol
Overview
Pendle Finance is a decentralised finance protocol that enables the trading of future yield as a distinct asset. It converts yield-bearing tokens into a Standardised Yield (SY) wrapper, which is then separated into a Principal Token (PT), redeemable at a 1:1 ratio for the underlying asset upon maturity, and a Yield Token (YT), which accrues all variable yield until the expiry date. A dedicated automated market maker facilitates swaps between PT and SY, allowing participants to secure fixed yield through PT purchases or to assume leveraged yield exposure via YT acquisitions. The protocol is governed by the PENDLE token and has established itself as the primary platform for on-chain yield trading, supporting integrations with major yield-bearing assets, including liquid restaking tokens and yield-bearing stablecoins.
Within The Counterparty graph, Pendle Finance connects to 43 tracked entities, most strongly to Arbitrum, Lido, Ethereum Mainnet.
Relations
Top connections in The Counterparty knowledge graph (confidence-weighted, 10 of 43 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deploys_on | Arbitrum | 95% |
provides_underlying_for | Lido | 95% |
deploys_on | Ethereum Mainnet | 95% |
uses | Pendle Amm v2 | 95% |
launches | Pendle Points Markets | 95% |
issues | Pendle Pt | 95% |
uses | Pendle Sy | 95% |
governs_via | PENDLE | 95% |
issues | Pendle Yt | 95% |
integrates | EigenLayer | 90% |
Sources
Facts in this record were checked against the following. Where a claim is not covered here, the record states only what the graph holds.
Questions on the record
What is SY?
Standardised Yield, a wrapper that normalises various yield-bearing tokens into a common interface, allowing them to be split into PT and YT.