Pendle's 2025 Plan: V2 Upgrade, Multi-chain Expansion, Perptual Futures Yield Products

Pendle has become a dominant fixed income protocol in the DeFi space, enabling users to trade future yields and lock in predictable on-chain returns.

In 2024, Pendle promoted the development of major narratives such as LST, re-staking, and yield-bearing stablecoins, and itself became the preferred launch platform for asset issuers.

In 2025, Pendle will expand beyond the EVM ecosystem, evolving into a comprehensive fixed income layer for DeFi, targeting new markets, products, and user groups, covering both the native cryptocurrency market and institutional capital markets.

The yield derivatives market in the DeFi world can be compared to one of the largest segments in the traditional financial world - interest rate derivatives. This is a market of over $500 trillion, and even a tiny fraction of this market represents billions of dollars in opportunity.

Most DeFi platforms only offer floating yields, which inevitably exposes users to market volatility, but Pendle has introduced fixed-rate products through a transparent and composable system.

This innovation has reshaped the $120 billion DeFi market landscape, making Pendle the dominant yield protocol. In 2024, Pendle's TVL grew by more than 20 times, currently accounting for over half of the yield market, which is five times that of its second-largest competitor.

Pendle is not just a yield protocol; it has evolved into the core infrastructure of DeFi, driving liquidity growth for those leading protocols.

Finding the Fit: From LST to Restaking

Pendle gained early market attention by addressing a core issue in DeFi - the volatility and unpredictability of yields. Unlike other platforms, Pendle allows users to lock in fixed returns by separating the principal from the yield.

With the rise of the liquid staking token (LST), Pendle's adoption rate has surged to help users unlock the liquidity of their staked assets. In 2024, Pendle successfully captured the narrative of (Restaking) - its eETH liquidity pool became the largest pool on the platform just days after its launch.

Pendle now plays a key role in the entire on-chain yield ecosystem. Whether providing hedging tools for volatile funding rates or serving as a liquidity engine for yield-bearing assets, Pendle has unique advantages in growth areas such as liquidity re-staked tokens (LRT), real-world assets (RWA), and on-chain money markets.

Pendle V2: Infrastructure Upgrade

Pendle V2 introduces standardized yield tokens (SY) to unify the wrapping method of interest-generating assets. This replaces the fragmented, customized integration solutions of V1, achieving seamless minting of "principal token" (PT) and "yield token" (YT).

Pendle V2's AMM is designed specifically for PT-YT trading, providing higher capital efficiency and a better pricing mechanism. V1 adopted a generic AMM model, while V2 introduces dynamic parameters ( such as rateScalar and rateAnchor ), which can adjust liquidity over time, thereby narrowing spreads, optimizing yield discovery, and reducing slippage.

Pendle V2 has also upgraded its pricing infrastructure by integrating a native TWAP oracle into the AMM, replacing the V1 model that relied on external oracles. These on-chain data sources reduce manipulation risks and improve accuracy. Additionally, Pendle V2 has introduced order book functionality, providing an alternative price discovery mechanism when the AMM price range is exceeded.

For liquidity providers (LP), Pendle V2 offers a stronger protection mechanism. The liquidity pools are now composed of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs holding until expiration - in V1, the results of LP earnings were harder to predict due to the mechanisms not being sufficiently specialized.

Breaking the EVM Boundaries: Entering Solana, Hyperliquid, and TON

The Pendle plan to expand to Solana, Hyperliquid, and TON marks a key turning point in its 2025 roadmap. So far, Pendle has been limited to the EVM ecosystem - even so, Pendle has captured over 50% market share in the fixed income sector.

However, the multi-chain trend of cryptocurrencies has emerged. Through the Citadel strategy, Pendle will break through the EVM island and reach new pools of funds and user groups.

Solana has become a major hub for DeFi and trading activities - the TVL in January reached a historic peak of $14 billion, with a strong retail base and a rapidly growing LST market.

Hyperliquid leverages vertically integrated Perptual Futures infrastructure, while TON relies on the native user funnel of Telegram. Both ecosystems are growing rapidly, but both lack mature revenue infrastructure. Pendle is expected to fill this gap.

If successfully deployed, these measures will significantly expand Pendle's total addressable market. Capturing fixed income capital flows on non-EVM chains could bring incremental TVL of hundreds of millions of dollars. More importantly, this move will solidify Pendle's position not only as an Ethereum-native protocol but also as a DeFi fixed income infrastructure across major public chains.

Embracing Traditional Finance: Building a Compliant Income Access System

Another key initiative in the Pendle 2025 roadmap is the launch of a KYC-compliant version of Citadel designed specifically for institutional funds. This solution aims to connect on-chain yield opportunities with traditional regulated capital markets by providing a structured and compliant access channel for crypto-native fixed income products.

The program will collaborate with other protocols and be managed by licensed investment managers under an independent SPV structure. This setup eliminates key friction points such as custody, compliance, and on-chain execution, enabling institutional investors to participate in Pendle yield products through a familiar legal framework.

The global fixed income market exceeds $100 trillion. Even if institutional funds allocate only a small proportion to on-chain assets, it could lead to inflows of billions of dollars. According to the EY-Parthenon 2024 survey, 94% of institutional investors recognize the long-term value of digital assets, with more than half increasing their allocation.

McKinsey predicts that the tokenization market could reach a scale of $2-4 trillion in the 2030s. Although Pendle is not a tokenization platform, it plays a key role in this ecosystem by providing pricing discovery, hedging, and secondary trading functions for tokenized yield products. Whether it is tokenized government bonds or interest-bearing stablecoins, Pendle can serve as a fixed income infrastructure layer for institutional-grade strategies.

Islamic Finance: A $4.5 Trillion New Opportunity

Pendle also plans to launch the Citadel program compliant with Islamic law, serving the global Islamic finance market worth $4.5 trillion - this industry spans over 80 countries and has maintained a 10% annual compound growth rate over the past decade, particularly growing rapidly in Southeast Asia, the Middle East, and Africa.

Strict religious restrictions have long hindered Muslim investors from participating in DeFi, but Pendle's PT/YT structure can flexibly design profit products that comply with Islamic law, which may resemble Islamic bonds ( Sukuk ).

If successful, this Citadel will not only expand Pendle's geographical coverage but also validate the capability of DeFi to adapt to a diverse financial system - thereby consolidating Pendle's positioning as a global fixed-income infrastructure on-chain.

Entering the Funding Rate Market

Boros, as one of the most important catalysts in the Pendle 2025 roadmap, aims to introduce fixed-rate trading into the Perptual Futures funding rate market. Although Pendle V2 has established its dominant position in the spot yield tokenization market, Boros plans to expand its business landscape to the largest and most volatile source of yield in the crypto space - the Perptual Futures funding rate.

The current perpetual futures market has over 150 billion USD in open contracts, with an average daily trading volume of 200 billion USD. This is a massive market but severely lacks hedging tools.

Boros plans to provide more stable returns for other protocols by implementing a fixed funding rate - this is crucial for institutions managing large-scale strategies.

For Pendle, this layout contains immense value. Boros is not only expected to unlock a new market worth billions of dollars but also achieve an upgrade in protocol positioning – transforming from a DeFi yield application into an on-chain interest trading platform, its functionality now comparable to the interest trading desks of traditional finance such as CME or JPMorgan.

Boros has also strengthened Pendle's long-term competitive advantages. Unlike chasing market hotspots, Pendle is laying the foundation for future yield infrastructure: whether it is funding rate arbitrage or spot holding strategies, it provides practical tools for traders and fund management departments.

Given the current lack of scalable funding rate hedging solutions in both the DeFi and CeFi sectors, Pendle is expected to gain a significant first-mover advantage. If successfully implemented, Boros will significantly enhance Pendle's market share, attract new user groups, and solidify its core position as a DeFi fixed income infrastructure.

Core Team and Strategic Layout

Pendle Finance was founded in mid-2020 by anonymous developers TN, GT, YK, and Vu, and has received investment from several top institutions.

Financing Milestone:

• Private Placement Round ( April 2021: Raised 3.7 million USD
• IDO)2021, April 2021: Raised $11.83 million at a price of $0.797 per token.
• A certain trading platform Launchpool ( in July 2023: distributed 5.02 million PENDLE ) accounting for 1.94% of the total supply (
• A trading platform Labs strategic investment ) August 2023 (: Accelerating ecosystem development and cross-chain expansion ) amount undisclosed (
• The Arbitrum Foundation funded ) with $1.61 million for Arbitrum ecosystem development in October 2023.
• The Spartan Group strategic investment ( November 2023 ): promoting long-term growth and institutional adoption ( amount undisclosed )

The ecological cooperation matrix is as follows:

• Base: Deploy to the Base network, connect native assets and expand fixed income infrastructure.
• Anzen: Launched RWA stablecoin sUSDz, enabling fixed income trading linked to real-world yields.
• Ethena: Integrates high APY stablecoins, connects to crypto-native yields and enhances DeFi collaboration.
• Ether.fi: Launched the first BTC native yield pool, breaking through ETH asset boundaries
• Berachain: As one of the first infrastructures to settle in, it builds a fixed income framework through native LST.

Token Economic Model

The PENDLE token is part of the Pendle ecosystem.