Pendle is an “old” DeFi protocol that was launched in 2021, but it has been tepid before. TVL has been declining in 2022, but it began to grow rapidly at the end of 2022. One of the key points is that Shanghai's upgrade has made the LSD sector popular.

Pendle's protocols are all based on interest-generating assets. In 2021, when Pendle is launched, interest-generating assets are nothing more than aToken, cToken or LP that appear around lending agreements and DEX. There are limited things to play with. The POS pledge concept that emerged after the Ethereum Merge has allowed the LSD pledge matryoshka sector to increase the types and volumes of interest-earning assets. Pendle also launched a series of income strategies related to ETH LSD in the second half of 2022, allowing its TVL to grow rapidly. The upcoming Shanghai upgrade will surely further promote its TVL growth. #Pendle