The Pendle protocol enables the tokenization and trading of future yield. The Pendle DeFi protocol introduces a novel automated market maker (AMM) that supports assets with time decay, giving users more control over future yield and providing optionality and opportunities for utilization.
Pendle offers fixed yield options, allowing users to find stability among volatile yields without a lock-up period. It also enables users to control their yield exposure and offers cross-chain compatibility.
The protocol incorporates yield tokenization, allowing users to split yield-bearing assets into separate yield and principal components for maximum control. It also features the Pendle AMM, explicitly designed for yield trading, with concentrated liquidity, a dual fee structure, and negligible impermanent loss concerns.
PENDLE, an ERC-20 token issued on Ethereum, is the native cryptocurrency of the Pendle protocol. Users can actively participate in yield management, trading, governance, and staking using PENDLE tokens within the Pendle protocol. They can optimize their yield strategies and profit from tokenized yield assets.
