Pendle 2025 Development Plan: V2 Upgrade, Multi-Chain Expansion and Perptual Futures Yield Products

Pendle has become a dominant fixed income protocol in the DeFi space, enabling users to trade future yields and lock in predictable on-chain returns.

In 2024, Pendle promoted the development of major narratives such as LST, re-staking, and yield-bearing stablecoins, becoming the preferred launch platform for asset issuers.

In 2025, Pendle plans to expand beyond the EVM ecosystem, evolving into a comprehensive fixed income layer for DeFi, targeting new markets, products, and user groups, covering both the native cryptocurrency market and institutional capital markets.

The yield derivatives market in the DeFi world can be compared to one of the largest sub-markets in the traditional financial world - interest rate derivatives. This is a market worth over 5 trillion dollars, and even a small proportion represents billions of dollars in opportunities.

Most DeFi platforms only offer floating returns, exposing users to market volatility, but Pendle introduces fixed-rate products through a transparent and composable system.

This innovation has reshaped the $120 billion DeFi market landscape, making Pendle the dominant yield protocol. In 2024, Pendle's TVL grew over 20 times, currently holding more than half of the yield market share, which is 5 times that of its second-largest competitor.

Pendle is not just a yield protocol; it has evolved into a core infrastructure of DeFi, driving liquidity growth for leading protocols.

Finding the Right Fit: From LST to Restaking

Pendle gained early market attention by addressing the core issues of yield volatility and unpredictability in DeFi. Unlike Aave or Compound, Pendle allows users to lock in fixed returns by separating the principal from the yield.

With the rise of liquid staking tokens (LST), Pendle's adoption rate has surged, helping users unlock the liquidity of their staked assets. In 2024, Pendle successfully captured the narrative of re-staking (Restaking) - its eETH fund pool became the largest pool on the platform just a few days after its launch.

Today, Pendle plays a key role in the entire on-chain yield ecosystem. Whether providing hedging tools for volatile funding rates or serving as a liquidity engine for yield-bearing assets, Pendle has unique advantages in growth areas such as liquidity re-staking tokens (LRT), real-world assets (RWA), and on-chain money markets.

Pendle V2: Infrastructure Upgrade

Pendle V2 introduces standardized yield tokens (SY) and unifies the packaging method for income-generating assets. This replaces the fragmented and customized integration solutions of V1, achieving seamless minting of "Principal Token" (PT) and "Yield Token" (YT).

Pendle V2's AMM is designed specifically for PT-YT trading, providing higher capital efficiency and a better pricing mechanism. V1 adopts a universal AMM model, while V2 introduces dynamic parameters such as rateScalar and rateAnchor, which can adjust liquidity over time, thereby narrowing spreads, optimizing yield discovery, and reducing slippage.

Pendle V2 also upgrades its pricing infrastructure by integrating a native TWAP oracle into the AMM, replacing the V1 model that relied on external oracles. These on-chain data sources reduce manipulation risks and improve accuracy. Additionally, Pendle V2 adds order book functionality to provide an alternative price discovery mechanism when the AMM price range is exceeded.

For liquidity providers ( LP ), Pendle V2 offers a stronger protection mechanism. The liquidity pool consists of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs holding until maturity - in V1, due to the mechanism being less specialized, the yield results for LPs were harder to predict.

Breaking the EVM Boundaries: Entering Solana, Hyperliquid, and TON

Pendle plans to expand to Solana, Hyperliquid, and TON, marking a key turning point in the 2025 roadmap. So far, Pendle has always been limited to the EVM ecosystem - even so, Pendle occupies over 50% market share in the fixed income sector.

However, the multichain trend of cryptocurrencies has emerged, and through the Citadel strategy, Pendle will break through the EVM island to reach new pools of funds and user groups.

Solana has become a major hub for DeFi and trading activities - January's TVL reached a historic peak of $14 billion, with a strong retail base and a rapidly growing LST market.

Hyperliquid, with its vertically integrated Perptual Futures infrastructure, and TON, relying on Telegram's native user funnel, both ecosystems are growing rapidly but lack mature revenue infrastructures. Pendle is expected to fill this gap.

If successfully deployed, these initiatives will significantly expand the total addressable market of Pendle. Capturing fixed income capital flows on non-EVM chains could bring in hundreds of millions of dollars in incremental TVL. More importantly, this move will solidify Pendle's position not only as an Ethereum-native protocol but also as an industry leader in DeFi fixed income infrastructure across major public chains.

Embracing Traditional Finance: Building a Compliant Income Access System

Another key initiative in Pendle's 2025 roadmap is the launch of a KYC-compliant version of Citadel designed specifically for institutional funds. This solution aims to connect on-chain yield opportunities with traditional regulated capital markets by providing a structured, compliant access channel to crypto-native fixed income products.

The plan will collaborate with protocols such as Ethena and be managed by licensed investment managers through an independent SPV structure. This setup eliminates key friction points such as custody, compliance, and on-chain execution, allowing institutional investors to participate in Pendle yield products through familiar legal frameworks.

The global fixed income market exceeds 100 trillion USD, and even if institutional funds allocate only a tiny proportion to on-chain, it could bring in tens of billions of dollars in capital inflow. According to the Ernst & Young-Parthenon 2024 survey, 94% of institutional investors recognize the long-term value of digital assets, and more than half are increasing their allocations.

McKinsey predicts that the tokenization market size may reach $2-4 trillion by 2030. Although Pendle is not a tokenization platform, it plays a key role in this ecosystem by providing pricing discovery, hedging, and secondary trading functions for tokenized yield products. Whether it is tokenized government bonds or yield-bearing stablecoins, Pendle can serve as the fixed-income infrastructure layer for institutional-grade strategies.

Islamic Finance: $4.5 Trillion New Opportunities

Pendle is also planning to launch a Sharia-compliant Citadel solution, serving the global Islamic finance market with a scale of $45 trillion - the industry covers over 80 countries and has maintained a 10% annual compound growth rate over the past decade, especially growing rapidly in Southeast Asia, the Middle East, and Africa.

Strict religious restrictions have long hindered Muslim investors from participating in DeFi, but Pendle's PT/YT framework can be flexibly designed to comply with Islamic law, and its form may be similar to Islamic bonds ( Sukuk ).

If successfully implemented, this Citadel will not only expand Pendle's geographical coverage but also validate the ability of DeFi to adapt to a diversified financial system - thereby consolidating Pendle's position as a global fixed income infrastructure on-chain market.

Entering the Funding Rate Market

Boros, as one of the most important catalysts in Pendle's 2025 roadmap, aims to introduce fixed-rate trading into the Perptual Futures funding rate market. Although Pendle V2 has established its dominance in the spot yield tokenization market, Boros plans to expand its business landscape to the largest and most volatile source of yield in the crypto space - the Perptual Futures funding rate.

The current perpetual futures market has an open interest of over $150 billion, with an average daily trading volume reaching $200 billion. This is a large-scale market but with severely inadequate hedging tools.

Boros plans to provide more stable returns for protocols like Ethena by implementing a fixed funding rate - this is crucial for institutions managing large-scale strategies.

For Pendle, this layout contains immense value. Boros is not only expected to open up a new market worth billions of dollars but also realizes an upgrade in protocol positioning - transforming from a DeFi yield application into an on-chain interest trading platform, its functional positioning is now comparable to the interest trading desks of CME or JPMorgan in traditional finance.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market trends, Pendle is laying the foundation for future income infrastructure: whether it's funding rate arbitrage or spot holding strategies, it provides practical tools for traders and asset management departments.

Given the current lack of scalable funding rate hedging solutions in both the DeFi and CeFi sectors, Pendle is expected to gain a significant first-mover advantage. If successfully implemented, Boros will significantly enhance Pendle's market share, attract new user groups, and solidify its core position as a fixed income infrastructure in DeFi.

Core Team and Strategic Layout

Pendle Finance was founded in mid-2020 by anonymous developers TN, GT, YK, and Vu, and has received investments from several top institutions.

Financing Milestone:

• Private placement round ( in April 2021: raised 3.7 million USD
• IDO)2021 April (: raised 11.83 million dollars at a price of 0.797 dollars/token
• Binance Launchpool)2023 July(: Distributed 5.02 million PENDLE) accounting for 1.94% of the total supply(
• Binance Labs strategic investment ) in August 2023: Accelerating ecosystem development and cross-chain expansion.
• The Arbitrum Foundation funded ( with 1.61 million USD for Arbitrum ecosystem development in October 2023.
• The Spartan Group strategic investment ) November 2023: promoting long-term growth and institutional adoption

Ecological Cooperation Matrix:

• Base(Coinbase L2): Deployed to the Base network, integrating native assets and expanding fixed income infrastructure.
• Anzen(sUSDz): Launch of RWA stablecoin sUSDz, enabling fixed income trading linked to real-world yields.
• Ethena(USDe/sUSDe): Integrated high APY stablecoin, access to crypto native yield