Pendle (PENDLE): how it works, supply and reviews

In short

Type: DeFi yield-derivative protocol (smart contracts), not a separate blockchain
Vesting: All team and investor tokens fully vested by September 2024
Risks and caveats: Pendle depends on third-party yield protocols; it is not responsible for losses from exploits in their contracts
Checked: 31 October 2026

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Key facts

Ticker: PENDLE
Official site: pendle.finance

Key facts checked on 31 October 2026 against official sources.

What is Pendle

Pendle is a permissionless yield-trading protocol: it wraps yield-bearing tokens such as liquid staking tokens, stablecoins and tokenised real-world assets, then splits them into a principal token (PT) and a yield token (YT) that trade on Pendle's own AMM. This lets users lock in a fixed yield or take leveraged exposure to future yield. Its newer product Boros trades funding rates on margin.

Network and consensus

Network and consensus — Pendle
Parameter	Details
Type	DeFi yield-derivative protocol (smart contracts), not a separate blockchain
Yield tokenisation	A yield-bearing token is wrapped into SY, then split into PT (principal) and YT (yield)
Maturity	PT redeems the full underlying after maturity; YT accrues yield only until maturity, then has no value
Market listing	Anyone can create a market on-chain; markets shown in the official app are curated
Boros	Margin platform for trading floating rates such as perp funding rates against a fixed rate

Supply and issuance

Supply and issuance — Pendle
Parameter	Details
Vesting	All team and investor tokens fully vested by September 2024
Issuance	216,076 PENDLE per week in September 2024, falling 1.1% weekly until April 2026, then 2% a year terminal inflation
Fees	5% of all yield accrued by YT, plus maturity-scaled swap fees on PT trades
Fee split	20% of swap fees to liquidity providers; the rest and all YT fees: 80% PENDLE buyback, 10% treasury, 10% operations

What PENDLE is used for

Stake PENDLE 1:1 for sPENDLE to get voting power in Pendle Protocol Proposals
Active sPENDLE holders receive PENDLE bought back with protocol fees
PENDLE incentives are paid to liquidity providers

Who develops and governs Pendle

Governance: sPENDLE balances are snapshotted for each Pendle Protocol Proposal (PPP); inactive voters lose rewards
Unstaking: sPENDLE unstakes 1:1 after 14 days, or immediately for a 5% fee
Pool deployment: Fee tiers are set by the pool deployer; currently only the Pendle team deploys pools
Open source: All Pendle smart contracts are open source (pendle-core-v2-public on GitHub)

History

History — Pendle
Date	Event
July 2021	Pendle's site offered an app to trade and hedge future yield, powered by its own AMM
September 2024	All team and investor PENDLE fully vested
4 February 2025	Pendle published its 2025 plan, including Boros for funding-rate trading
26 February 2026	Pendle's 2026 plan reported Boros had passed $11.5 billion notional volume in 7 months since launch
April 2026	Scheduled switch of PENDLE emissions to 2% annual terminal inflation

Security and audits

Audit reports in the pendle-core-v2-public repository: main codebase by Ackee, Dedaub, Dingbats, WatchPug, CMichel, 0xleastwood, ChainSecurity (2024) and Spearbit (2024); later modules by WatchPug and HickupHH3
Pendle states all smart contracts are open source and audit findings were addressed

Security incidents

Further incidents are reported by third parties (press, incident databases) but are not confirmed in the company’s own channels, so they are not listed here.

Official PENDLE contracts

Official PENDLE contracts
Network	Contract address
Ethereum	0x808507121b80c02388fad14726482e061b8da827
Ethereum	0x999999999991E178D52Cd95AFd4b00d066664144

PENDLE token and sPENDLE staking contract on Ethereum, as listed in Pendle's deployment file and tokenomics docs.

Risks and caveats

Pendle depends on third-party yield protocols; it is not responsible for losses from exploits in their contracts
YT has no value after maturity; matured positions left unredeemed stop earning and their yield goes to the Pendle treasury
PENDLE supply keeps growing through incentive emissions (2% a year terminal inflation from April 2026)

Official links

Website: www.pendle.finance
Docs: docs.pendle.finance
Source code: github.com/pendle-finance/pendle-core-v2-public
Blog: medium.com/pendle
App: app.pendle.finance

Questions and answers

What is Pendle?

A permissionless DeFi protocol that splits yield-bearing tokens into principal (PT) and yield (YT) tokens so users can trade, fix or leverage future yield.

What are PT and YT?

PT redeems the underlying asset at maturity; YT collects the asset's yield until maturity and is worth nothing afterwards.

What is sPENDLE?

Staked PENDLE (1:1). It gives voting power on Pendle Protocol Proposals and a share of PENDLE bought back with fees; unstaking takes 14 days or costs 5% for instant exit.

What fees does Pendle charge?

5% of yield accrued by YT plus swap fees on PT trades; 80% of fee revenue (after LP share) goes to PENDLE buybacks.

Is Pendle audited?

Audit reports from Ackee, Dedaub, Dingbats, WatchPug, ChainSecurity, Spearbit and others are published in Pendle's GitHub repository.

Sources

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Page updated: 2026-10-31