Permissionless yield-trading protocol Pendle announced its expansion to the Ethereum Layer 2 network, Base, unlocking new opportunities for users. These include fixed yield options, yield trading, liquidity provision (LP) opportunities, and more, broadening access to various financial strategies.
Base, known for its secure, cost-effective, and developer-friendly infrastructure, has become a prominent Ethereum Layer 2 network. As of now, it boasts a Total Value Locked (TVL) of over $3.4 billion, positioning it as the sixth-largest Layer 2 by TVL, according to DeFiLlama data. The network supports notable projects such as Aerodrome, Uniswap, and Aave V3, among many others.
Pendle aims to complement existing ecosystems by expanding asset use cases, introducing novel yield strategies, and enhancing liquidity. So far, the protocol has achieved notable milestones, accumulating approximately $1 billion in BTCfi liquidity and $717 million in LST/LRT liquidity. With its move to Base, Pendle plans to replicate this success by adding new liquidity pools, expanding its “Penconomy,” and potentially launching new products.
Pendle envisions making Base a cornerstone of its path to becoming the leading yield-trading protocol. By leveraging the Base’s resources, the protocol aims to enhance its accessibility and further its mission of pioneering the yield-trading space.
Pendle is now live on @Base!
We're excited to unlock new yield avenues on Base — fixed yield, yield trading, LP opportunities, and more.
Starting with cbETH, select BTC assets, and plenty more in the Pendle pipeline! pic.twitter.com/98TvPN3gsx
— Pendle (@pendle_fi) November 27, 2024
Pendle: A Marketplace For Trading Yields From Supported Yield-Bearing Tokens
Pendle is a protocol originally launched on the Ethereum network, designed to create a marketplace for trading the yields generated by supported yield-bearing tokens. It operates by splitting these tokens into two distinct components: principal tokens (PTs), representing the underlying asset, and yield tokens (YTs), representing the yield generated by the asset.
This separation enables the creation of liquidity pools where users can trade these components. Pendle’s platform supports trading at both fixed and floating rates for these yield-bearing tokens, offering users a range of opportunities. Users can secure fixed yields, speculate on future changes in the yield of the underlying asset, or provide liquidity to Pendle’s pools to earn additional rewards.
Recently, Pendle has introduced the Boros platform. Formerly referred to as Pendle V3, Boros aims to extend the scope of yield trading by enabling margin trading with greater capital efficiency. This platform is versatile, supporting a variety of yields, including both on-chain and off-chain rates, thereby broadening the potential use cases for Pendle’s ecosystem.
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