Pendle
Yield trading protocol that splits yield-bearing assets into a fixed-yield principal token (PT) and a yield token (YT) that collects the yield and points, with pools to provide liquidity on both.
Security record: 1 incident- Wraps a yield-bearing asset and splits it into PT (redeemable 1:1 for the underlying at maturity, so a fixed yield) and YT (all yield and points until maturity)
- Points are treated as yield: YT buys a larger points exposure per dollar, and LPs keep most of it with Keep YT mode
- RWA markets next to crypto: Coinbase tokenized stocks GOOGLc and NVDAc on Base, gold-backed PAXGy on X Layer
- Contracts on Ethereum, Arbitrum, Base, BNB Chain, Optimism, Mantle, Sonic, HyperEVM, Berachain, Monad, Katana and Ink; open source and audited
- Fees: 5% of all YT yield and points, plus a swap fee scaled to time to maturity; 80% buys back PENDLE for active sPENDLE stakers
Six criteria, each 1 to 5 from the facts on this page, weighted into one score inside its category. How we score
- Depth
- 12 chains in its docs plus X Layer; 100+ RWA markets launched in 2026 alone, next to crypto yield
- Cost
- 5% of YT yield and points, swap fee scaled to days to maturity; redeeming PT at maturity is free
- Ease
- No account, wallet only; public API and hosted SDK; one-click zap into pools
- Trust
- Holds deposits in its contracts; audited by Ackee, Dedaub, Dingbats and Code4rena wardens
- Access
- Wallet connection needed; sanctioned and FATF-listed regions excluded
- Rewards
- YT earns partner points with leverage; LPs earn PENDLE, plus $20K USDC per GOOGLc and NVDAc pool
Cost to start: Gas on the chain you use, a swap fee of (fee tier / 365) x days to maturity on PT and YT swaps, and 5% of the yield and points your YT earns. Redeeming PT at maturity has no protocol fee.
- Open app.pendle.finance and connect a wallet; no account needed
- Go to Markets, pick the chain and an asset, such as GOOGLc on Base or PAXGy on X Layer
- For a fixed yield, click the PT bar, choose the input asset and amount, check the Effective Fixed APY and Swap
- For yield and points exposure, click the YT bar instead; YT is worth zero at maturity
- To provide liquidity, open Pools, zap in with one asset and turn on Keep YT mode to keep points exposure
- After maturity, redeem PT or roll over into a new market, since matured positions stop earning
- USDC LP incentives on the GOOGLc and NVDAc pools (Base), claimable on Merkl$20K in USDC per pool, plus swap fees and PENDLE incentives
- Pendle RWA Insights — Franklin TempletonWith Chetan Karkhanis, Franklin Templeton Jake and TN from Pendle spoke with Chetan Karkhanis , Senior Vice President in Franklin Templeton’s Franklin Innovation Research Strategies and Technology (FIRST) group for Asia…
- RWA Insights with Partners Group and AssetoWith Vincent Ng (Partners Group) and Bridget Li (Asseto) https://medium.com/media/cbf898cf525694d27f7ef96235137973/href Jake and TN from Pendle spoke with Vincent Ng, Managing Director and Head of Asia at Partners Group…
- InevitableYield is one of the oldest instruments in finance. It’s the force that money orbits around, deciding the path of every dollar in the system. Yield is the spice that controls the financial universe, and Pendle has a plan…
Pendle sits on top of other protocols, so an exploit or failure in the underlying asset can cost funds, and Pendle says it is not responsible for third-party losses. YT loses value when yield or points fall and is worth zero at maturity; PT locks a fixed yield only if held to maturity and its price moves before then. LPs can lose value from shifts in PT and YT demand, and point multipliers are set by partner protocols that can change them at any time. Headline pool APY can come mostly from temporary incentives. Yield and points on positions left unredeemed after maturity go to the Pendle treasury. Coinbase tokenized stocks are only for eligible jurisdictions outside the US, and Boros is closed to US users.
1 incident
Past incidents 1
Penpie exploit on Pendle markets, Pendle paused. Penpie, an independent protocol built on Pendle, lost about $27M to a reentrancy bug reached through permissionless listing of fake Pendle markets. Pendle paused its contracts about 20 minutes after the attack, said it saved about $105M more, and stated Pendle user funds were not affected; Pendle resumed the next day. Pendle said user funds were never at risk (reported by The Block). https://www.theblock.co/news/regulation/2024-09-04-pendle-says-it-saved-105-million-that-could-have-been-further-drained-amid-penpie-hack-314616
Third partyNo user losses
Sources: theblock.co, rekt.news, halborn.com
From the project’s statements and security coverage. Own fault means the project’s code, servers or keys; third party means a vendor, registrar, oracle or issuer it relies on.
