Pendle (PENDLE)

System: Pendle — Credit and Asset Management

Pendle is a yield-management system for holders and traders of yield-bearing tokens. Pendle V2 wraps yield-bearing assets into Standardized Yield (SY), splits them into Principal Token (PT) and Yield Token (YT), and enables fixed-yield and long-yield strategies through Automated Market Maker (AMM) markets. Boros is included as a Pendle product because it adds margin trading for funding-rate and yield-rate exposure through interest-rate swap markets. Pendle's mainnet launched in 2021. The system boundary includes Pendle V2 contracts, Boros contracts, PENDLE and staked PENDLE (sPENDLE) mechanisms, fee wallets, buyback contracts, treasury wallets, Boros oracle-consumption contracts, API services and permissioned Boros relayers/bots.

Market Data

Price$1.19
Market Cap$202.99M
Fully Diluted Valuation$334.86M
30d Change-39.92%
365d Change-72.71%

Token Functionalities

Governance

  • Economic Design/Parameter Control (Signal)

    Right to signal or vote on Pendle Protocol Proposals affecting Pendle economic directions, where submitted. PENDLE ownership is required because PENDLE must be staked 1:1 into sPENDLE for voting power; sPENDLE is the folded activation mechanism. Execution is not evidenced as automatic or non-discretionary.

Value Distribution

  • Third-Party Reward Distribution (One-off or Random) [Exogenous]

    Right to receive pro-rata or time-weighted third-party reward tokens distributed to active staked PENDLE (sPENDLE) holders. PENDLE ownership is required through staking into sPENDLE; the reward token source is external. Pendle documents in-kind airdrops from points-bearing-asset fees, and one observed CHIPS distribution was made to sPENDLE holders.

  • Buyback Entitlement (Discretionary but Regular)

    Right to receive pro-rata distributions of PENDLE acquired through protocol fee-funded buybacks. PENDLE ownership is required because PENDLE must be staked into active sPENDLE; sPENDLE is the folded activation mechanism. The programme is repeatable but not classified as algorithmic or guaranteed because harvesting, funding and “up to 100%” distribution leave discretion.

System Attributes

Operating Model

<p>Pendle&nbsp;has&nbsp;a&nbsp;Hybrid&nbsp;operating&nbsp;model.&nbsp;Pendle’s&nbsp;core&nbsp;yield&nbsp;tokenisation,&nbsp;PT/YT&nbsp;trading,&nbsp;AMM&nbsp;execution&nbsp;and&nbsp;permissionless&nbsp;market&nbsp;creation&nbsp;are&nbsp;implemented&nbsp;through&nbsp;on-chain&nbsp;contracts.&nbsp;Boros&nbsp;also&nbsp;uses&nbsp;on-chain&nbsp;Router,&nbsp;MarketHub&nbsp;and&nbsp;Market&nbsp;contracts&nbsp;for&nbsp;user&nbsp;operations,&nbsp;market&nbsp;accounting,&nbsp;margin&nbsp;checks,&nbsp;order&nbsp;execution&nbsp;and&nbsp;settlement.&nbsp;The&nbsp;system&nbsp;is&nbsp;not&nbsp;purely&nbsp;on-chain&nbsp;because&nbsp;agent&nbsp;calls&nbsp;require&nbsp;Pendle&nbsp;permissioned&nbsp;relayers,&nbsp;Deposit&nbsp;Box&nbsp;contracts&nbsp;are&nbsp;managed&nbsp;by&nbsp;Pendle’s&nbsp;backend,&nbsp;and&nbsp;Pendle-operated&nbsp;permissioned&nbsp;bots&nbsp;can&nbsp;liquidate&nbsp;accounts,&nbsp;force-cancel&nbsp;orders&nbsp;and&nbsp;toggle&nbsp;close-only&nbsp;mode.</p>

Value Creation

<p>Pendle&nbsp;has&nbsp;Hybrid&nbsp;value&nbsp;creation.&nbsp;On-chain&nbsp;value&nbsp;creation&nbsp;occurs&nbsp;in&nbsp;Pendle&nbsp;V2&nbsp;contracts&nbsp;that&nbsp;wrap&nbsp;yield-bearing&nbsp;tokens&nbsp;into&nbsp;SY,&nbsp;split&nbsp;SY&nbsp;into&nbsp;PT&nbsp;and&nbsp;YT,&nbsp;and&nbsp;support&nbsp;PT/YT&nbsp;trading&nbsp;through&nbsp;AMM&nbsp;markets.&nbsp;Boros&nbsp;adds&nbsp;on-chain&nbsp;rate-market&nbsp;value&nbsp;creation&nbsp;through&nbsp;Router,&nbsp;MarketHub,&nbsp;separate&nbsp;Market&nbsp;contracts,&nbsp;order-book&nbsp;trades,&nbsp;over-the-counter&nbsp;trades,&nbsp;AMM&nbsp;liquidity&nbsp;and&nbsp;margin&nbsp;checks.&nbsp;The&nbsp;off-chain&nbsp;side&nbsp;is&nbsp;material&nbsp;because&nbsp;Boros&nbsp;rate&nbsp;exposure&nbsp;depends&nbsp;on&nbsp;floating-rate&nbsp;data&nbsp;reported&nbsp;through&nbsp;each&nbsp;market’s&nbsp;FIndex&nbsp;Oracle:&nbsp;variable&nbsp;interest&nbsp;payments&nbsp;are&nbsp;determined&nbsp;by&nbsp;oracle-reported&nbsp;floating-rate&nbsp;accrual,&nbsp;and&nbsp;oracle&nbsp;updates&nbsp;trigger&nbsp;settlement&nbsp;calculations.</p>

Value Capture

<p>Pendle&nbsp;has&nbsp;Hybrid&nbsp;value&nbsp;capture.&nbsp;Pendle&nbsp;V2&nbsp;captures&nbsp;fees&nbsp;from&nbsp;YT&nbsp;yield&nbsp;and&nbsp;PT/YT&nbsp;swaps.&nbsp;LP&nbsp;providers&nbsp;receive&nbsp;20%&nbsp;of&nbsp;swap&nbsp;fees,&nbsp;while&nbsp;the&nbsp;remaining&nbsp;swap&nbsp;fees&nbsp;and&nbsp;all&nbsp;YT&nbsp;fees&nbsp;are&nbsp;split&nbsp;80%&nbsp;to&nbsp;PENDLE&nbsp;buybacks,&nbsp;10%&nbsp;to&nbsp;Protocol&nbsp;Treasury&nbsp;and&nbsp;10%&nbsp;to&nbsp;Protocol&nbsp;Operations.&nbsp;Active&nbsp;sPENDLE&nbsp;holders&nbsp;are&nbsp;final&nbsp;beneficiaries&nbsp;of&nbsp;buyback-funded&nbsp;PENDLE&nbsp;distributions,&nbsp;while&nbsp;treasury&nbsp;and&nbsp;operations&nbsp;wallets&nbsp;capture&nbsp;separate&nbsp;protocol&nbsp;shares.&nbsp;Off-chain&nbsp;value&nbsp;routing&nbsp;is&nbsp;material&nbsp;because&nbsp;points-based&nbsp;yield&nbsp;fees&nbsp;are&nbsp;deducted&nbsp;by&nbsp;partner&nbsp;protocols&nbsp;before&nbsp;being&nbsp;reallocated&nbsp;to&nbsp;Pendle-controlled&nbsp;wallets.&nbsp;Boros&nbsp;charges&nbsp;taker,&nbsp;over-the-counter,&nbsp;settlement,&nbsp;entrance&nbsp;and&nbsp;liquidation&nbsp;fees;&nbsp;liquidation&nbsp;fees&nbsp;route&nbsp;to&nbsp;protocol&nbsp;treasury,&nbsp;but&nbsp;the&nbsp;complete&nbsp;final&nbsp;routing&nbsp;for&nbsp;all&nbsp;Boros&nbsp;fees&nbsp;is&nbsp;unknown.</p>