Pendle Reaches 9 Billion Dollar Milestone as Aave's PT-USDe Expansion Triggers Explosive Growth

SelfCustodyIssues · 2025-12-26T20:51:42+00:00

Pendle's total value locked (TVL) surpassed $9 billion after Aave raised the borrowing cap for PT-USDe by $600 million. This surge reflects growing confidence in yield-bearing tokens as collateral and highlights Pendle's emerging dominance in the yield space.

SelfCustodyIssues

2025-12-26 20:51:42

Abstract generation in progress

The fixed-income protocol Pendle has hit a landmark achievement, with its TVL surging past the 9 billion dollar mark on August 13, marking an unprecedented peak. What’s particularly striking is how a single move from Aave catalyzed this surge: the lending platform increased the borrowing cap for PT-USDe (September 2025) by 600 million dollars, and the expansion was fully utilized immediately.

This influx directly boosted Pendle’s ecosystem metrics. The Protocol’s PT-backed collateral TVL climbed to an all-time high of 4.6 billion dollars, reflecting growing confidence in yield-bearing tokens as collateral. Principal Tokens (PTs) now represent 6.4 billion dollars of the protocol’s total value locked, cementing their position as the dominant asset type within Pendle’s infrastructure.

The momentum signals a pivotal moment for Pendle as institutional and retail capital alike recognize the efficiency gains from using yield tokens as collateral. With 9 billion dollars now locked across the platform and major protocols like Aave actively expanding integration limits, Pendle appears to be capturing significant mindshare in the structured yield space.

PENDLE2,41%

AAVE1,91%

USDE0,07%

PTS-3,86%

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