Pendle
Crypto Overview
Overview
Pendle is a decentralized finance (DeFi) protocol that allows users to tokenize and trade future yield. The protocol separates yield-generating assets into two components: the ownership token (PT) representing the underlying asset, and the yield token (YT) representing future yield.
Intended Utility
Pendle's primary purpose is to create a market for future yield trading, allowing users to speculate on or hedge against future yield rates. The PENDLE token serves as the protocol's governance token and provides holders with voting rights on protocol decisions. Token holders can also stake PENDLE to earn a share of protocol fees.
Actual Utility
The protocol has demonstrated significant adoption with over $150 million in Total Value Locked (TVL) as of 2024. The platform actively facilitates yield trading across multiple chains including Ethereum, Arbitrum, and BNB Chain. The development team maintains regular updates and improvements to the protocol, with a strong focus on security and efficiency.
Token Distribution and Governance
The PENDLE token has a transparent distribution model with clear allocations for team members, advisors, and community initiatives. Team tokens are subject to vesting periods to ensure long-term alignment. The project maintains active development with regular GitHub commits and transparent communication about protocol updates.
Technical Implementation
The protocol operates through smart contracts that handle the tokenization and trading of yield. The system is non-custodial, meaning users maintain control of their assets at all times. All trades involve actual asset ownership and transfer, with clear value proposition for both buyers and sellers.
Crypto Impact
To assign a comfort level investing in Pendle from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Pendle.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.