🧐Trend Forecast丨Pendle will become one of the top DeFi protocols by 2025!
With the rapid development of DeFi, the market's demand for innovative financial tools and diversified investment strategies is growing. Users are no longer satisfied with simple restaking yields; they want to diversify and maximize their "yield Lego."
Since its inception, Pendle has demonstrated its ability to continuously innovate within the DeFi ecosystem. Its business model currently faces no rivals in the yield sector, making it the largest yield trading protocol in the DeFi space.
Unique business model + strong economic data + favorable factors such as the upcoming V3 release in 2025, there is no doubt that @pendle_fi is establishing its industry leadership and is very likely to become one of the top DeFi protocols in 2025—
1⃣ Unique Business Innovation: A New Definition of Time Value
Pendle's core innovation lies in tokenizing and trading the time value of assets, separating principal and interest, allowing users to split yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT). Users can lock in future yields or capture short-term market opportunities by trading YT.
To clarify this abstract concept, I’ll use an example from @0xWatell to illustrate why Pendle has long-term play value—
You stake 1 ETH and receive 1 stETH, with a current APY of 5%. A year later, you would actually receive a principal of 1 + interest of 0.05 = 1.05 stETH.
In Pendle, your asset is divided into two parts—
• PT (Principal Token) → worth 1 stETH, displayed as PT stETH;
• YT (Yield Token) → worth 0.05 stETH, displayed as YT stETH.
These two parts can be split and traded separately.
1 PT stETH represents "when you hold this PT, a year later, you can exchange it for 1 stETH," which is your principal. By giving up future yields, it is equivalent to buying PT at a certain discount, which can later be redeemed 1:1 at maturity, earning a fixed interest rate.
0.05 YT stETH represents "when you hold this YT, a year later, you can earn the staking yield corresponding to the principal of 1 stETH." If the staking yield exceeds the initial APY of 5%, you profit; if it is less than 5%, you incur a loss.
In simple terms—
PT is a zero-coupon bond with a fixed interest rate, so it is suitable to buy PT directly when APY is high to lock in yields.
YT is a bet that future yields will be higher than current ones, so it is better to buy YT when APY is low, time the market, and convert it into immediate liquidity.
This innovation fills the gap in the market regarding time value trading, giving Pendle a unique advantage when interfacing with traditional financial products. At least in the current yield sector, no stronger competitor has been seen!
2⃣ Pendle in a Value Undervaluation
Pendle belongs to the yield trading sector within the DeFi ecosystem, with a TVL exceeding $5 billion, showing strong market growth momentum and becoming an absolute dark horse in 2024.
In the past year, deep collaborations with currently popular projects like ETHENA have led to YT trading volume exceeding $100 million in the first month of cooperation, and the TVL of liquidity pools has increased by 45% year-on-year, further validating the universality of the Pendle model and market demand.
However, compared to leading DeFi protocols, Pendle's value is still underestimated. Based on market capitalization comparisons—
Uniswap, No.1 DEX, FDV $15 billion
Aave, No.1 lending protocol, FDV $6 billion
EigenLayer, No.1 restaking protocol, FDV $7 billion
Ethena, No.1 basis trading protocol, FDV $19 billion
As the largest yield trading protocol in DeFi, Pendle currently has an FDV of only $1.3 billion. Given the strong and growing market demand, I believe this will drive its valuation space to fully open up by 2025.
3⃣ Pendle's New Engine: V3 Version Boros
An important piece of news in Pendle's 2025 roadmap is the upcoming launch of a margin yield trading platform—Pendle V3 (Boros).
Key highlights—
Boros is the first DeFi trading platform that can provide hedging fee rates. The current daily contract trading volume is $150-$200 billion (at least several times that of spot trading), and compared to V2, Boros has a more promising market.
Any DeFi protocol that relies on hedging fee rates as a source of income (e.g., Ethena) is a potential customer for Boros.
In addition to assets on EVM, Boros can list any on-chain or off-chain yield or interest rate trading.
No new tokens are introduced; 80% of protocol revenue goes to vePENDLE holders.
As an innovation and supplement to V2, Boros effectively enhances capital efficiency by improving the AMM mechanism, optimizing asset utilization, and providing frictionless yield management, covering a broader user base while continuing to empower $PENDLE and $vePendle.
With this series of moves, Pendle's positioning will transform into the on-chain Binance for interest rate trading, likely making it the next $HYPE in 2025!
4⃣ Conclusion—Wherever there is yield, Pendle can be applied!
According to 2024 data, Pendle's protocol TVL grew by 300% within a year, with daily trading volume exceeding $10 million, a 150% increase from the previous year.
I am pleased to see that over the past year, Pendle has continuously developed in line with market trends, finding opportunities in every yield protocol—
Launched new features: limit orders, PT rolling, liquidity migration, points market dashboards, etc.
Collaborated with multiple lending protocols like Morpho, Silo, and ZeroLend to achieve PT circulation.
Partnered with several popular protocols to integrate new liquidity pools…
This year, in addition to Boros, Pendle is also preparing to expand into popular protocols like Berachain, Hyperliquid, and Monad, covering more asset classes with the time value trading model. For example, stablecoin yields, NFT staking yields, on-chain bonds, and even real-world asset (RWA) yields.
Overall, whether in product design, business model, or performance data, Pendle undoubtedly stands out as one of the most remarkable products in the DeFi space over the past two years.
Building in this market is like rowing upstream; if you don't advance, you retreat. In the midst of the waves, few can truly settle down and get things done.
I admire Pendle's team's "unfinished task" attitude (Job's not done), keep building, keep running; this may also be the tone and essence that allows Pendle to break through!
I believe Pendle will continue to approach this ultimate goal in 2025—integrating with myriad chains, wherever there is yield, Pendle can be applied!
免责声明:本文章仅代表作者个人观点,不代表本平台的立场和观点。本文章仅供信息分享,不构成对任何人的任何投资建议。用户与作者之间的任何争议,与本平台无关。如网页中刊载的文章或图片涉及侵权,请提供相关的权利证明和身份证明发送邮件到support@aicoin.com,本平台相关工作人员将会进行核查。