Is Pendle Finance Really ‘The Future of DeFi’?

Since the beginning of the year, PENDLE has surged 502% to a new all-time high.

This shows a significant growth in the midst of increasing protocol activity.

What is driving PENDLE?

Pendle Finance, an Ethereum-based commodity trading protocol, uses a unique approach to produce agriculture by dividing assets into core tokens and commodity tokens. This framework allows users to trade tokens while earning up to 47% yield on the assets.

Despite launching in 2021, Pendle has recently seen a significant increase in adoption. This comparison can be linked to the high activity of Ethereum Liquidity restocking and the airdrops of DeFi protocols such as Ether.Fi.

Many users have been depositing their Ether.Fi token eETH on Pendle Finance in anticipation of an airdrop from EigenLayer. This is because returners receive points from EigenLayer.

Read more: Ethereum Repository: What is it and how does it work?

However, the recent increase in Pendle's activity can be attributed mainly to Athena's USD pool reaching 400 million. This growing protocol activity has pushed Pendle's total value locked (TVL) to over $4 billion.

This represents an impressive growth of over 1,500% since the beginning of the year, when Pendle's TVL stood at a modest $233 million. The platform's total transaction volume has risen to $10.5 billion. In particular, most of these business activities take place on Ethereum, but the project is gaining great interest in Layer-2 networks such as Arbitrum and Mantle.

Read more: Which are the best Altcoins to invest in April 2024?

Pendle's exponential growth has solidified its position as the largest DeFi production protocol. This impressive development prompted BitMEX co-founder Arthur Hayes to declare the platform “the future of DeFi.”