Pendle 2025 Plan: V2 Upgrade, Multi-Chain Expansion, Perptual Futures Yield Products

Pendle has become a dominant fixed income protocol in the DeFi space, allowing 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, becoming a launch platform favored by asset issuers.

In 2025, Pendle plans to 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 traditional finance - interest rate derivatives. This is a market of over $50 trillion, and even a tiny fraction of this market represents billions of dollars in opportunities.

Most DeFi platforms only offer floating yields, exposing users to market volatility, but Pendle introduces 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 over 20 times, currently holding more than half of the yield market's TVL, which is five times that of its second-largest competitor.

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

Finding Common Ground: From LST to Restaking

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

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

Today, Pendle plays a key role in the entire on-chain yield ecosystem. Whether it is 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 yield-bearing assets. This replaces the fragmented and customized integration solutions of V1, achieving seamless minting of "Principal Tokens" (PT) and "Yield Tokens" (YT).

The AMM of Pendle V2 is specifically designed for PT-YT trading, offering higher capital efficiency and a better pricing mechanism. V1 adopted a generic AMM model, while V2 introduces dynamic parameters (such as rateScalar and rateAnchor) that adjust liquidity over time, thereby narrowing the spread, 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 an order book feature, providing an alternative price discovery mechanism when prices exceed the AMM price range.

For liquidity providers (LPs), 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 to maturity - in V1, due to the lack of specialization in the mechanism, the profit outcomes for LPs were harder to predict.

Breaking the EVM Boundaries: Expanding into Solana, Hyperliquid, and TON

Pendle's 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 - nonetheless, Pendle has captured over 50% of the market share in the fixed income sector.

However, the multi-chain trend of cryptocurrencies has emerged, and through the Citadel strategy to break through the EVM island, Pendle will reach a whole new pool of funds and user base.

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

Hyperliquid, with its vertically integrated Perptual Futures infrastructure, and TON, relying on the native user funnel of Telegram, are both experiencing rapid ecosystem growth, but both lack mature revenue infrastructure. Pendle is expected to fill this gap.

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

Embracing Traditional Finance: Building a Compliance-Oriented Income Access System

Another key initiative in Pendle's 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 to crypto-native fixed income products.

The plan will collaborate with several protocols, managed by licensed investment managers through 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 familiar legal frameworks.

The global fixed income market exceeds $100 trillion, and even if institutional funds allocate only a tiny percentage to on-chain assets, it could lead to billions of dollars in inflows. The EY-Parthenon 2024 survey shows that 94% of institutional investors recognize the long-term value of digital assets, with more than half increasing their allocations.

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’s tokenized government bonds or yield-bearing stablecoins, Pendle can serve as the fixed income infrastructure layer for institutional-level strategies.

Islamic Finance: A $4.5 Trillion New Opportunity

Pendle also plans to launch a Sharia-compliant Citadel solution, catering to 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 developing rapidly in Southeast Asia, the Middle East, and Africa.

Strict religious restrictions have long hindered Muslim investors' participation in DeFi, but Pendle's PT/YT framework can be flexibly designed to create yield products compliant with Islamic law, which may take the form of Islamic bonds (Sukuk).

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

Entering the Funding Rate Market

Boros, as one of the most important catalysts in Pendle's 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 footprint into the largest and most volatile sources of yield in the crypto space - the Perptual Futures funding rate.

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

The Boros plan aims to provide more stable returns for certain protocols by implementing fixed funding rates - 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 it also achieves an upgrade in protocol positioning - transforming from a DeFi yield application into an on-chain interest trading platform, its functionality is now comparable to that of some mainstream institutions' interest trading desks in traditional finance.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market trends, Pendle is laying the groundwork for future yield infrastructure: whether it's funding rate arbitrage or spot holding strategies, it provides practical tools for traders and asset 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 fixed income infrastructure in DeFi.

Core Team and Strategic Layout

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

Financing Milestone:

• Private Placement Round (April 2021): Raised $3.7 million, with participation from several well-known investment institutions;
• IDO (April 2021): Raised $11.83 million at a price of $0.797 per token;
• A trading platform Launchpool (July 2023): Distributed 5.02 million PENDLE (accounting for 1.94% of the total supply);
• Strategic investment by an organization (August 2023): Accelerating ecological development and cross-chain expansion (amount undisclosed);
• Arbitrum Foundation Grant (October 2023): Received $1.61 million for Arbitrum ecosystem development;
• Strategic investment by an investment institution (November 2023): Promoting long-term growth and institutional adoption (amount undisclosed).

Ecological Cooperation Matrix:

• Establish cooperation with multiple L2 networks, stablecoin projects, and LST protocols to jointly build fixed income infrastructure.

Token Economic Model

The PENDLE token is the core of the Pendle ecosystem, serving both governance functions and protocol interaction permissions. By splitting yield-bearing assets into principal tokens and yield tokens, Pendle has pioneered a new paradigm of yield management – and PENDLE is the key tool for participating in and shaping this ecosystem.

Key Data (As of March 31, 2025):

• Price: 2.57 USD
• Market Cap: 4.106