Pendle (PENDLE)

Pendle is a protocol that enables the trading of tokenized future yield on an AMM system.

Basics

• Based in:
• Started in / Announced on: 16-3-2021
• Mainnet release: 17-6-2021

• From EthHub (23-3-2021):

"Pendle is an on-chain yield asset aggregator that enables the separation and trading of future yield."

Audits & Exploits

• Bug bounty program can be found [insert here].
• Scored 68% on DeFi Safety (25-5-2024):

"Code and Team: Pendle scores high in code accessibility and public team transparency but did not do any changes based on initial reports.

Code Documentation: Comprehensive documentation is available, covering architecture and source code, aiding clarity and understanding.

Testing: No evidence of code testing or coverage, posing potential risks.

Security: Multiple audits and a substantial bug bounty program enhance security, though monitoring needs improvement.

Admin Controls: High transparency in admin controls and immutability, ensuring trust in governance."

• From their Twitter (15-6-2021)

"We take security seriously and have undergone multiple audits."

Governance

DAO

• From Footprint Analytics: Pendle 's visual dashboard

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Compound and Aave

How it works

• From this blog (12-7-2021):

"DeFi users who hold yield-bearing tokens from Aave and Compound can deposit them into Pendle, which in return mints ownership tokens (OT) and yield tokens (YT). Yield tokens can be immediately sold for USDC in Pendle’s AMM pools, or they can be added to the AMM pools so that token holders can earn trading fees and other incentives (stake LP token, earn $PENDLE). The value of a yield token decays as it gets closer to the expiry because claimable yield drops with time. There is an expiry because YT buyers are buying the right to access yield without owning the underlying asset. If there is no expiry, that means YT buyers have access to the yield perpetually by only paying a fixed price. There isn’t a way on the blockchain to enforce the buyers to make regular payments to the yield-bearing asset holders and hence an expiry is necessary."

Roadmap

• Can be found [Insert link here].

Team, Funding, Partners

Team

• Full team can be found [here].

Funding

• Binance Labs has announced an undisclosed investment in Pendle Finance (23-8-2023).
• Mechanism Capital lists them in their portfolio as of 15-5-2023.
• Zircuit; mentioned a founder was part of their Mainnet Round (22-7-2024). As Binance Labs was leading the Zircuit round, it probably came through them.

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