Pendle
Crypto Overview
Purpose and Utility
Pendle is a decentralized finance (DeFi) protocol that allows users to tokenize and trade future yield from various yield-generating assets. The protocol separates yield-bearing tokens into two components: ownership tokens (OT) and yield tokens (YT). The PENDLE token serves as the protocol's governance token and provides utility through staking and fee sharing.
Business Model Analysis
The protocol generates revenue through trading fees from its automated market makers (AMMs) specialized in trading yield tokens. These fees are distributed to PENDLE stakers and the protocol treasury. The core business model involves facilitating legitimate asset trading and yield management, which aligns with halal principles as it involves actual asset exchange and value creation.
Real-World Adoption
As of 2024, Pendle has achieved significant adoption with over $150 million in Total Value Locked (TVL) across multiple blockchain networks including Ethereum, Arbitrum, and BNB Chain. The protocol has processed billions in trading volume and maintains active development with regular protocol updates and feature releases.
Token Distribution and Governance
The PENDLE token distribution includes allocations for the team (18%), investors (27%), and community/ecosystem (55%). Team and investor tokens are subject to vesting periods ranging from 1-3 years, indicating commitment to long-term development. The project demonstrates strong governance participation with regular community voting on protocol improvements.
Development Activity
The project maintains active development with regular GitHub commits, protocol upgrades, and ecosystem expansion. The team has consistently delivered on their roadmap items and maintains transparent communication about development progress.
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.