[Crypto projects](https://revain.org/projects/) › Pendle

# 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

## Key facts

- **Ticker**: PENDLE
- **Official site**: [pendle.finance](https://www.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

| 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

| 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

| 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

| Network | Contract address |
|---|---|
| Ethereum | [0x808507121b80c02388fad14726482e061b8da827](https://etherscan.io/address/0x808507121b80c02388fad14726482e061b8da827) |
| Ethereum | [0x999999999991E178D52Cd95AFd4b00d066664144](https://etherscan.io/address/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](https://www.pendle.finance/)
- Docs: [docs.pendle.finance](https://docs.pendle.finance/)
- Source code: [github.com/pendle-finance/pendle-core-v2-public](https://github.com/pendle-finance/pendle-core-v2-public)
- Blog: [medium.com/pendle](https://medium.com/pendle)
- App: [app.pendle.finance](https://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

- [Pendle docs (GitHub source) - Introduction](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/Introduction.md)
- [Pendle docs (GitHub source) - Tokenomics](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/ProtocolMechanics/Mechanisms/Tokenomics.md)
- [Pendle docs (GitHub source) - Fees](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/ProtocolMechanics/Mechanisms/Fees.md)
- [Pendle docs (GitHub source) - sPENDLE](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/ProtocolMechanics/Mechanisms/sPENDLE.md)
- [Pendle docs (GitHub source) - Security](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/Security.md)
- [Pendle docs (GitHub source) - FAQ](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/pendle-docs/FAQ.mdx)
- [Pendle docs (GitHub source) - Boros overview](https://raw.githubusercontent.com/pendle-finance/documentation/master/docs/boros-docs/Introduction.md)
- [pendle-core-v2-public - audits](https://github.com/pendle-finance/pendle-core-v2-public/tree/main/audits)
- [pendle-core-v2-public - Ethereum deployments](https://raw.githubusercontent.com/pendle-finance/pendle-core-v2-public/main/deployments/1-core.json)
- [Pendle Medium - Pendle 2025: Zenith](https://medium.com/pendle/pendle-2025-zenith-cf1a91e6e23f)
- [Pendle Medium - Pendle 2026](https://medium.com/pendle/pendle-2026-d19aa1f2ef76)
- [Pendle homepage (Wayback, July 2021)](https://web.archive.org/web/20210701000000id_/https://www.pendle.finance/)

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Page updated: 2026-10-31

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Source: https://revain.org/projects/pendle/