Pendle announces token upgrade to drive the scalable development of its DeFi yield platform

Title: Pendle Announces Token Upgrade to Drive Scalable Growth of Its DeFi Yield Platform

Author: Pendle

Source:

Repost: Mars Finance

The world’s largest crypto yield trading platform Pendle announced an upgrade to its native token economy, introducing sPENDLE. This update aims to unlock deeper liquidity, diversify income sources, and further solidify Pendle’s leading position in on-chain yields and interest rate markets. Combined with recent performance data of Pendle and Boros, this upgrade highlights the platform’s long-term strategic goals in decentralized finance and its expansion into related markets.

2025 Record Performance and Protocol Dominance

In 2025, Pendle achieved significant milestones across multiple core network and financial metrics, demonstrating strong usage and sustained market share in the yield trading sector:

· Average Total Value Locked (TVL): approximately $5.7 billion, up 76% year-over-year, with peak TVL reaching $13.4 billion, reflecting robust liquidity participation in the yield market, alongside top DeFi protocols like Uniswap, Aave, Hyperliquid, etc. · Total Protocol Fees: approximately $44.6 million, up 134% year-over-year, with token holder dividends around $34.9 million · Monthly Nominal Trading Volume: approximately $54 billion (90-day rolling average), with daily trading volumes frequently reaching hundreds of millions of dollars, indicating strong market demand for fixed income

These figures show that Pendle has become a key platform for tokenized yields and funding rate trading, with fee income and liquidity depth surpassing many fixed income platforms.

Pendle’s New Token Upgrade Highlights

The upgraded $PENDLE token brings a simpler and fairer overall solution to the ecosystem:

· Protocol revenue will be used to buy back $PENDLE tokens and distribute to active sPENDLE holders · Liquidity model optimization: sPENDLE supports a 14-day no-penalty exit period or immediate redemption with a 5% fee · sPENDLE will be a composable, fungible token that can be integrated with any dApp, eliminating the need to balance lock-up periods with liquidity and participation · Voting mechanism upgrade: the previous manual voting will be replaced with an algorithmic emission model aimed at increasing allocation efficiency while reducing PENDLE emissions by 20–30% · The vePENDLE staking mechanism will be paused on January 29. Before that, vePENDLE holders will receive a special multiplier (up to 4x) on their virtual sPENDLE balance based on remaining lock-up time. Rewards will be distributed based on this virtual sPENDLE balance, providing vePENDLE holders with higher returns during the transition period

Pendle Co-founder and CEO TN Lee stated:

“This upgrade is a structural enhancement in Pendle’s expansion alongside Boros. Our goal has always been to bring the efficiency and scale of traditional fixed income markets into DeFi. With this upgrade, Pendle will become a more robust, sustainable, and institutional-grade yield infrastructure.”

Boros: The New Frontier of On-Chain Interest Rate Trading

Another key catalyst for the $PENDLE token architecture upgrade is Boros—a pioneering on-chain platform that tokenizes perpetual contract funding rates, transforming previously non-tradable yield streams into tradable assets. Boros’s data shows rapid organic growth and huge development potential:

· Key Metrics: after 4 months online, Boros achieved approximately $6.9 billion in nominal open interest, $91 million in OI, $6.8 million in deposits (by end of 2025) · Generated about $301,000 in fees in emerging markets, preliminarily validating the product-market fit of on-chain interest rate derivatives · Current open interest in perpetual contracts is about $63 billion; Boros is still in early stages, with an expected 10x OI penetration · Besides mainstream trading pairs like BTC / ETH / BNB / HYPE, Boros has launched NVDAUSDC–Hyperliquid, allowing users to trade HIP-3 NVIDIA perpetual contract funding rates, with plans to expand to more exotic assets and stock indices like S&P 500, NASDAQ, AMZN, TSLA, etc.

By tapping into the largely underdeveloped revenue source of funding rate exposure in DeFi, Boros further strengthens Pendle’s growth trajectory, making its revenue structure less dependent on TVL and traditional yield fees.

Strategic Vision: From DeFi Yields to Global Fixed Income Infrastructure

This token upgrade aims to support Pendle’s expansion of its DeFi yield infrastructure and connect with centralized and traditional financial markets. Fixed income is one of the largest sectors in the global financial system, and Pendle has built a comprehensive toolkit—from principal tokens (PT), yield tokens (YT), to funding rate derivatives—to help users access this market more easily.

Looking ahead, Pendle will continue to develop ecosystem integration strategies, including leverage strategies, AI applications, PT collateralization, and cross-chain liquidity mechanisms.

About Pendle

Pendle is the world’s largest crypto yield trading platform, dedicated to tokenizing and trading yield assets. Pendle offers highly sophisticated yield strategies for both individual and institutional users, redefining the future of on-chain fixed income.