Pendle 2025 Plan: Upgrade Infrastructure, Multi-chain Expansion, Perptual Futures Yield Products

Pendle has become a dominant fixed income protocol in the DeFi space, allowing 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-generating stablecoins, and became 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 of over $500 trillion, and even a small proportion represents billions of dollars in opportunities.

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

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

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

Finding Common Ground: From LST to Restaking

Pendle has gained early market attention by addressing a core issue in DeFi - the volatility and unpredictability of yields. 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 (LSTs), Pendle's adoption rate has surged to help users unlock the liquidity of their staked assets. In 2024, Pendle successfully captured the Restaking narrative - its eETH fund pool became the largest on the platform within just a few days of its launch.

Pendle now 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-Staked Tokens (LRT), Real World Assets (RWA), and on-chain money markets.

Pendle V2: Infrastructure Upgrade

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

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

Pendle V2 has also upgraded 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, providing an alternative price discovery mechanism when the AMM price range is exceeded.

For liquidity providers (LPs), Pendle V2 offers a stronger protection mechanism. The liquidity pools are now composed of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs holding until expiration.

Breaking the EVM Boundaries: Expanding into Solana, Hyperliquid, and TON

Pendle's plan to expand to Solana, Hyperliquid, and TON marks a key turning point in its 2025 roadmap. So far, Pendle has always been confined to the EVM ecosystem, yet it still holds over 50% of the market share in the fixed income sector.

However, the multichain trend in cryptocurrency 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, with January's TVL reaching a historic peak of $14 billion, supported by a strong retail base and a rapidly growing LST market.

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

If deployed successfully, these measures will significantly expand Pendle's total addressable market. Capturing fixed income capital flows on non-EVM chains could bring several hundred million dollars in incremental TVL. More importantly, this move will solidify Pendle's position not only as an Ethereum-native protocol but also as a key player in the 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 structured and compliant crypto-native fixed income product access.

The plan will collaborate with protocols such as Ethena and be managed by licensed investment managers under 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 assets, it could bring in billions of dollars in capital inflow. According to the EY-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 could 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’s tokenized government bonds or interest-bearing stablecoins, Pendle can serve as the fixed income infrastructure layer for institutional-level strategies.

Islamic Finance: $4.5 Trillion New Opportunity

Pendle is also planning to launch a Sharia-compliant Citadel solution, catering to the global Islamic finance market valued at $4.5 trillion - this industry spans over 80 countries and has maintained an average annual compound growth rate of 10% over the past decade, particularly 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 structure can be flexibly designed to comply with Islamic law for yield products, which may be similar in form to Islamic bonds (Sukuk).

If successfully implemented, this Citadel will not only expand Pendle's geographical coverage but also validate the capability of DeFi to adapt to diverse financial systems - thereby consolidating Pendle's positioning as the global fixed-income infrastructure on-chain.

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 dominant position 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 over 150 billion USD in open contracts, with an average daily trading volume of 200 billion USD. This is a large-scale market but severely lacking in 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 achieves 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 a large investment bank in traditional finance.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market trends, Pendle is laying the groundwork for future revenue 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 consolidate 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 investment from several top institutions.

Financing Milestone:

• Private Placement Round (April 2021): Raised $3.7 million
• IDO (April 2021): Raised $11.83 million at a price of $0.797 per token
• A trading platform Launchpool (July 2023): distributed 5.02 million PENDLE (accounting for 1.94% of total supply)
• Strategic investment by an organization (August 2023): Accelerating ecological development and cross-chain expansion (amount undisclosed)
• Arbitrum Foundation Funding (October 2023): Received $1.61 million for Arbitrum ecosystem development
• The Spartan Group Strategic Investment (November 2023): Driving Long-term Growth and Institutional Adoption (Amount undisclosed)

The ecological cooperation matrix is as follows:

• A certain L2 network: deployed to this network, connecting to native assets and expanding fixed income infrastructure.
• Anzen (sUSDz): Launch R