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

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

In 2024, Pendle has promoted the development of major narratives such as LST, re-staking, and yield-bearing stablecoins, and has itself become 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 likened to one of the largest segments in the traditional financial world - interest rate derivatives. This is a market exceeding $50 trillion, and even a tiny fraction of this market represents billions of dollars in opportunity.

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

This innovation reshapes 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, which is five times that of its second-largest competitor.

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

Finding the Fit: From LST to Restaking

Pendle has gained early market attention by addressing a core issue in DeFi – the volatility and unpredictability of yields. Unlike Aave or Compound, 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 surged to help users unlock the liquidity of their staked assets. In 2024, Pendle successfully captured the re-staking narrative - its eETH fund 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 acting as a liquidity engine for yield-bearing assets, Pendle has unique advantages in growth areas such as liquidity re-staking 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 packaging of income-generating assets. This replaces the fragmented, customized integration schemes of V1, achieving seamless minting of "Principal Token" (PT) and "Yield Token" (YT).

Pendle V2's AMM is specifically designed for PT-YT trading, offering higher capital efficiency and a better pricing mechanism. V1 used 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 added an order book feature, 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 pool is now composed of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs holding until maturity - in V1, due to the mechanisms not being sufficiently specialized, the yield outcomes for LPs were more difficult 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 - even so, Pendle has captured over 50% of the market share in the fixed income sector.

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

Solana has become a major hub for DeFi and trading activities - with a historic peak of $14 billion in TVL in January, 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 growth in their ecosystems, but both lack mature yield infrastructures. Pendle is expected to fill this gap.

If successfully deployed, these measures will significantly expand Pendle's total addressable market. Capturing fixed income flows on non-EVM chains could bring in hundreds of millions 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 Compliant 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 access channels for structured and compliant crypto-native fixed income products.

The plan will collaborate with the protocol, managed by a licensed investment manager under an independent SPV structure. This setup eliminates key friction points such as custody, compliance, and on-chain execution, allowing institutional investors to participate in Pendle yield products through familiar legal structures.

The global fixed income market size exceeds 100 trillion USD, and even if institutional funds allocate only a tiny proportion to on-chain assets, it could result in billions of dollars in inflows. 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 size may reach $2-4 trillion in the 2030s. Although Pendle is not a tokenization platform, it plays a key role in the ecosystem by providing pricing discovery, hedging, and secondary trading functions for tokenized yield products. Whether it's tokenized government bonds or interest-bearing stablecoins, Pendle can serve as the fixed income infrastructure layer for institutional-grade strategies.

Islamic Finance: A $4.5 Trillion New Opportunity

Pendle also plans to launch the Sharia-compliant Citadel solution, serving the global Islamic finance market valued at $4.5 trillion - this industry spans over 80 countries, maintaining 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 from participating in DeFi, but Pendle's PT/YT framework can be flexibly designed to create yield products that comply with Islamic law, which may take the form similar to Islamic bonds (Sukuk).

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

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 large-scale market but severely lacks hedging tools.

Boros plans to provide more stable returns for the protocol 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 open up a new market worth billions of dollars but also to achieve an upgrade in the protocol's positioning - transforming from a DeFi yield application to an on-chain interest trading platform, its functional positioning is now comparable to interest trading desks in traditional finance like CME or JPMorgan.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market hotspots, Pendle is laying the groundwork 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 poised to gain 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 top institutions such as Bitscale Capital and Crypto.com Capital.

Financing Milestone:

• Private Placement Round ( April 2021: Raised $3.7 million, with participants including HashKey Capital, Mechanism Capital, and others;
• IDO)2021 April (: raised 11.83 million USD at a price of 0.797 USD/token;
• Launchpool)2023 July(: By distributing 5.02 million PENDLE), accounting for 1.94% of the total supply(;
• Strategic investment ) August 2023 (: Accelerating ecological development and cross-chain expansion ) Amount undisclosed (;
• The foundation funded ) with 1.61 million USD for ecological construction in October 2023;
• 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: Launching RWA stablecoin sUSDz, achieving fixed income trading linked to real-world yields;
• Ethena: Integrating high APY stablecoins, accessing crypto native yields and strengthening DeFi collaboration;
• Ether.fi: Launched the first BTC native yield pool, breaking through the boundaries of ETH assets;
• Berachain: As one of the first infrastructures to settle in, it builds a fixed income framework through native LST.

Token Economic Model

PENDLE token is