Pendle Finance, a decentralized finance (DeFi) platform that offers users yields in the form of tradable tokens, is introducing a new product that derives gains from traditional sectors. The product is part of the growing trend of real-world assets (RWA) tokenization, which links virtual investments to tangible assets such as real estate, precious metals, artworks, and collectibles.
Pendle was released last November on Ethereum and has since expanded to Arbitrum, BNB Chain, and Optimism networks. Developers told journalists that Pendle will use MakerDAO’s Boosted Dai Savings (sDAI) and Flux Finance’s fUSDC stablecoin – both of which generate yields from traditional finance sectors – for the RWA product.
Fixed Yield and RWA have some of the largest addressable markets that remain untapped in DeFi, TN Lee, the co-founder and CEO of Pendle, shared in a message to journalists. I firmly believe these will play a key role in attracting huge, off-chain institutional investors on-chain.
The product could help boost the total locked value (TVL) of Pendle, which stands at just under $120 million as of Thursday. At the time of writing, PENDLE token was up over 10% at 60 cents.
Yes, RWA is already in DeFi, and now Pendle is able to offer a suite of tools that lets you properly hedge or manage these yields. Interest rate derivatives, swaps, fixed income…all these products that TradFi institutions love, they’re already here, Lee added.