Pendle is a blockchain project focused on yield tokenization, founded in 2021. The main goal of the platform is to enable users to lock in future yields on their crypto assets and receive benefits in advance. This innovative approach not only provides cryptocurrency holders with a new source of income, but also introduces more liquidity and flexibility into the interest rate market. Pendle implements this function through smart contract technology, allowing users to participate in the market in a decentralized and secure manner.
Project basic situation
Business scope: Pendle’s business scope covers multiple aspects of yield tokenization. Through the Pendle platform, users can convert the future earnings of their crypto assets into income tokens, which can be freely traded in the market. This tokenization approach allows users to flexibly manage their assets and obtain liquidity when needed.
Founding Team: Pendle’s founding team consists of a group of professionals with extensive experience in the blockchain and financial fields. The main members include:
TN Lee: Co-founder, served as a founding team member and business leader at Kyber Network, and engaged in mining-related work at RockMiner.
Vu Nguyen: Co-founder, formerly CTO of Digix DAO, focusing on tokenization projects for real assets.
Long Vuong Hoang: Engineering supervisor, holds a computer science degree from the National University of Singapore and worked as a software engineering intern at Jump Trading.
Ken Chia: Director of Institutional Relations, previously worked at JPMorgan Chase and other financial institutions, focusing on the development of institutional markets.
Investment background
Pendle’s major investors include Mechanism Capital, HashKey, Bixin Ventures, and Binance Labs, among others. The support of these well-known investment institutions provides strong financial guarantee for Pendle's development and enhances its market competitiveness.
Project development route and history: According to co-founder Vu Nguyen’s Twitter, Pendle’s V3 version is planned to be launched in 2024. This version will introduce interest rate derivatives of traditional finance and is expected to arouse great interest in the tradeFi market. Specific implementation details are still under discussion, and this innovation will further expand Pendle’s application scope.
Product and Business Profile: Pendle’s core product is a permissionless revenue trading protocol that allows users to execute a variety of revenue management strategies. The working principle of Pendle is mainly divided into the following parts:
Revenue tokenization
Pendle tokenizes revenue assets into SY tokens and tokenizes them in accordance with the ERC-5115 standard. These tokens are divided into principal tokens (PT) and yield tokens (YT). PT tokens will not earn any income, but can be exchanged for the underlying asset at a 1:1 ratio upon expiration. YT represents the asset's yield as of the maturity date.
Pendle AMM: PT and YT can be traded through Pendle’s automated market maker (AMM), which is Pendle’s core engine. Pendle’s AMM enables efficient DeFi yield trading, attracting traders who want to earn fixed income. When liquidity providers provide liquidity, they can obtain swap fees generated by the mining pool, PENDLE incentives, and protocol incentives issued by the underlying assets.
VePendle
VePendle is an innovation that brings the interest rate derivatives market of traditional finance onto the chain, making it accessible to everyone. This feature will further promote Pendle’s ecosystem development and attract more users to participate.
Project Analysis: Code: Pendle’s code has been reviewed by multiple auditing agencies to ensure its security and reliability. The development team remains stable and continues to update and maintain the code to adapt to market changes.
Social data: Pendle is highly active in social media and communities, which provides a good foundation for its project promotion and user growth. Users can obtain the latest project information and market trends by participating in community activities.
in conclusion
As a blockchain project focusing on yield tokenization, Pendle provides cryptocurrency holders with a new income management strategy through innovative tokenization mechanisms and efficient trading platforms. With the launch of the V3 version, Pendle is expected to further expand its market influence in the future and attract more investors and users to participate. This innovative platform not only provides users with flexible revenue management tools, but also brings new opportunities and challenges to the entire crypto market.