Pendle | Trading Non Stop

What is PENDLE?

Pendle is a decentralized finance (DeFi) platform that lets users turn future earnings from assets like staked tokens into tradeable financial products.

It tokenizes future yield, meaning users can separate and trade the income generated by an asset independently from the asset itself.
It splits assets into two parts: Principal Tokens (representing the original investment) and Yield Tokens (representing the future earnings).
Governance is managed through sPENDLE, a liquid staking token that replaced the older vePENDLE system to make participation easier and more flexible.

Deep Dive

1. Purpose & Value Proposition

Pendle addresses a common issue in DeFi: the earnings from yield-generating assets are often locked and hard to access. Pendle allows users to "tokenize" these future earnings from assets like staked ETH (stETH) or liquidity pool tokens. This creates a marketplace where people can buy, sell, or hedge against future yield, offering new ways to manage risk and take advantage of market opportunities.

2. Core Technology & Mechanism

Pendle uses a special type of Automated Market Maker (AMM) designed for assets whose value decreases over time as yield is paid out. When you deposit a yield-generating asset, Pendle creates two separate tokens:

Principal Token (PT): Represents the original asset’s value, redeemable at a set future date.
Yield Token (YT): Gives the holder the right to all the yield earned until that future date.

These tokens can be traded independently on Pendle’s AMM, allowing users to customize their investment strategies.

3. Tokenomics & Governance Evolution

The PENDLE token plays a key role in governing the platform and incentivizing users. In January 2026, Pendle switched from the vePENDLE model, which required locking tokens for a long time, to the more flexible sPENDLE staking model (CoinMarketCap). sPENDLE holders can vote on governance decisions and earn rewards from protocol fees. The new model also offers a shorter 14-day withdrawal period, making it easier to access staked tokens.

Conclusion

At its core, Pendle builds the infrastructure for a tradable yield curve in DeFi, turning fixed future income into a flexible, liquid asset. As the platform grows, it could set the standard for how on-chain yield is managed and traded.