Pendle operates as a decentralized protocol enabling the tokenization and trading of DeFi yields. It permits participants to engage in sophisticated yield-management strategies by splitting yield-bearing assets into two distinct components: the Principal Token (PT) and the Yield Token (YT). This mechanism facilitates the earning of either fixed or variable yields via Pendle's version 2 Automated Market Maker (AMM).

Pendle has an objective to differentiate itself via the tokenization of DeFi yields, which allows for wagering on yield variations. The project claims its updated AMM design enhances capital efficiency up to a substantial measure in comparison to its initial version. Pendle also offers a reduced risk of impermanent loss and dual income sources for liquidity providers with PT and YT swaps. #PENDLE🔥🔥 $PENDLE