Pendle's 2025 Plan: Upgrade to V2, Multi-Chain Expansion, Launch of Perptual Futures Yield Products

Pendle has become a dominant fixed income protocol in the DeFi space, allowing users to trade future yields and lock in predictable on-chain returns.

In 2024, Pendle promoted the development of key narratives such as LST, restaking, and yield-bearing stablecoins, becoming the preferred launch platform for asset issuers.

In 2025, Pendle plans to expand beyond the EVM ecosystem, evolving into a comprehensive fixed income layer for DeFi, targeting new markets, products, and user groups, covering both the native cryptocurrency market and institutional capital markets.

The yield derivatives market in the DeFi world can be compared to one of the largest segments in the traditional financial world - interest rate derivatives. This is a market of over $500 trillion, and even a tiny share of this market represents billions of dollars in opportunities.

Most DeFi platforms only offer floating yields, which inevitably exposes users to market fluctuations, but Pendle has introduced fixed rate products through a transparent and composable system.

This innovation has reshaped the $120 billion DeFi market landscape, making Pendle the dominant yield protocol. In 2024, Pendle's TVL grew by more than 20 times, currently holding over half of the yield market's TVL, which is five times that of its second-largest competitor.

Pendle is not just a yield protocol; it has evolved into a core infrastructure of DeFi, driving liquidity growth for those leading protocols.

Finding the Fit: From LST to Restaking

Pendle gained early market attention by addressing a core issue in DeFi - the volatility and unpredictability of yields. Unlike some lending platforms, Pendle allows users to lock in fixed returns by separating the principal from the yields.

With the rise of liquid-staking tokens (LST), Pendle's adoption rate has surged, helping users unlock the liquidity of staked assets. In 2024, Pendle successfully captured the narrative of re-staking (Restaking) - its eETH fund pool became the largest pool on the platform within just a few days of its launch.

Pendle now plays a key role in the entire on-chain yield ecosystem. Whether providing hedging tools for volatile funding rates or acting as a liquidity engine for yield-bearing assets, Pendle has unique advantages in growth areas such as liquid staking tokens (LRT), real-world assets (RWA), and on-chain money markets.

Pendle V2: Infrastructure Upgrade

Pendle V2 introduces standardized yield tokens (SY), to unify the packaging of yield-bearing assets. This replaces the fragmented, customized integration solutions of V1, achieving seamless minting of "Principal Token" (PT) and "Yield Token" (YT).

Pendle V2's AMM is specifically designed for PT-YT trading, offering higher capital efficiency and a better pricing mechanism. V1 adopts a generic AMM model, while V2 introduces dynamic parameters ( such as rateScalar and rateAnchor ), which can adjust liquidity over time, thereby narrowing spreads, optimizing yield discovery, and reducing slippage.

Pendle V2 has also upgraded its pricing infrastructure by integrating a native TWAP oracle into the AMM, replacing the V1 model that relied on external oracles. These on-chain data sources reduce manipulation risks and improve accuracy. Additionally, Pendle V2 has added an order book feature that provides an alternative price discovery mechanism when the AMM price range is exceeded.

For liquidity providers (LP), Pendle V2 offers a stronger protection mechanism. The liquidity pool is now composed of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs who hold until expiration - in V1, due to the mechanism not being sufficiently specialized, the yield outcomes for LPs were more difficult to predict.

Breaking Through EVM Boundaries: Expanding into Solana, Hyperliquid, and TON

The Pendle project’s expansion to Solana, Hyperliquid, and TON marks a key turning point in its 2025 roadmap. So far, Pendle has been confined to the EVM ecosystem - even so, Pendle has captured over 50% market share in the fixed income sector.

However, the multi-chain trend of cryptocurrencies has emerged. Through the Citadel strategy, Pendle will break through the EVM isolation and reach new pools of funds and user groups.

Solana has become a major hub for DeFi and trading activities - January's TVL reached a historic peak of $14 billion, with a strong retail base and a rapidly growing LST market.

Hyperliquid relies on vertically integrated Perptual Futures infrastructure, while TON leverages the native user funnel of Telegram. Both ecosystems are growing rapidly, but they lack mature yield infrastructure. Pendle is expected to fill this gap.

If deployed successfully, these measures will significantly expand Pendle's total addressable market. Capturing fixed-income capital flows on non-EVM chains could bring in hundreds of millions of dollars in incremental TVL. More importantly, this move will solidify Pendle's position not just as an Ethereum-native protocol, but also as a key player in the DeFi fixed-income infrastructure across major public chains.

Embracing Traditional Finance: Building a Compliant Income Access System

Another key initiative in Pendle's 2025 roadmap is the launch of a KYC-compliant version of Citadel designed specifically for institutional funds. This solution aims to connect on-chain yield opportunities with traditional regulated capital markets by providing structured, compliant crypto-native fixed income product access channels.

The plan will collaborate with certain protocols and be managed by licensed investment managers within an independent SPV structure. This setup eliminates key friction points such as custody, compliance, and on-chain execution, allowing institutional investors to participate in Pendle yield products through familiar legal frameworks.

The global fixed income market size exceeds 100 trillion USD, and even if institutional funds allocate only a small proportion to on-chain assets, it could bring in billions of dollars in inflows. According to the EY-Parthenon 2024 survey, 94% of institutional investors recognize the long-term value of digital assets, with more than half increasing their allocations.

McKinsey predicts that the tokenization market could reach a size of $2-4 trillion in the 2030s. Although Pendle is not a tokenization platform, it plays a key role in this ecosystem by providing pricing discovery, hedging, and secondary trading functions for tokenized yield products. Whether it is tokenized government bonds or yield-bearing stablecoins, Pendle can serve as the fixed-income infrastructure layer for institutional-level strategies.

Islamic Finance: A $4.5 Trillion New Opportunity

Pendle also plans to launch the Citadel solution compliant with Islamic law, serving the global Islamic finance market with a scale of $4.5 trillion - this industry covers over 80 countries and has maintained a 10% annual compound growth rate over the past decade, particularly developing rapidly in Southeast Asia, the Middle East, and Africa.

Strict religious restrictions have long hindered Muslim investors from participating in DeFi, but Pendle's PT/YT framework can be flexibly designed to comply with Islamic law, and its form may be similar to Islamic bonds ( Sukuk ).

If successfully implemented, this Citadel will not only expand Pendle's geographic coverage but also validate DeFi's ability to adapt to a diverse financial system - thereby consolidating Pendle's positioning as the global fixed income infrastructure in the on-chain market.

Entering the Funding Rate Market

Boros, as one of the most important catalysts in Pendle's 2025 roadmap, aims to introduce fixed-rate trading into the Perptual Futures funding rate market. Although Pendle V2 has established its dominant position in the spot yield tokenization market, Boros plans to expand its business landscape into the largest and most volatile source of yield in the crypto space - the Perptual Futures funding rate.

The current perpetual futures market has over $150 billion in open contracts, with a daily trading volume reaching $200 billion. This is a large-scale market but lacks sufficient hedging tools.

Boros plans to provide more stable returns for certain protocols by implementing a fixed funding rate - this is crucial for institutions managing large-scale strategies.

For Pendle, this layout contains immense value. Boros is not only expected to unlock a new market worth billions of dollars but also achieves an upgrade in protocol positioning - transforming from a DeFi yield application into an on-chain interest trading platform, its functional positioning now comparable to certain large institutional interest trading desks in traditional finance.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market trends, Pendle is laying the groundwork for future yield infrastructure: whether it's funding rate arbitrage or spot holding strategies, it provides practical tools for traders and fund management departments.

Given the current lack of scalable funding rate hedging solutions in both the DeFi and CeFi sectors, Pendle is expected to gain a significant first-mover advantage. If successfully implemented, Boros will significantly enhance Pendle's market share, attract new user groups, and solidify its core position as a fixed income infrastructure in DeFi.

Core Team and Strategic Layout

Pendle Finance was founded in mid-2020 by anonymous developers TN, GT, YK, and Vu, and has received investments from several top institutions.

Financing Milestone:

• Private Placement Round ( April 2021: Raised 3.7 million USD
• IDO)2021 April 2021: Raised $11.83 million at a price of $0.797 per token
• Binance Launchpool ( July 2023 ): Distributed 5.02 million PENDLE ( accounting for 1.94% of the total supply )
• A trading platform strategically invested ( in August 2023: Accelerating ecosystem development and cross-chain expansion. The amount is undisclosed ).
• The Arbitrum Foundation funded ( with $1.61 million for the Arbitrum ecosystem development in October 2023.
• The Spartan Group strategic investment ) November 2023 (: promoting long-term growth and institutional adoption ) amount undisclosed (

The ecological cooperation matrix is as follows:

• Base: Deploy to the Base network, connect native assets and expand fixed income infrastructure.
• Anzen: Launched RWA stablecoin sUSDz, achieving fixed income trading linked to real-world returns.
• Ethena: Integrates high APY stablecoins, connects crypto native yield, and strengthens DeFi synergy.
• Ether.fi: Launched the first BTC native yield pool, breaking through the asset boundary of ETH.
• Berachain: As one of the first infrastructures to settle in, it builds a fixed income framework through native LST.

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Token Economic Model

PENDLE token is part of the Pendle ecosystem.