Pendle 2025 Development Plan: V2 Upgrade, Multi-Chain Expansion and 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 drove the development of major narratives such as LST, re-staking, and yield-bearing stablecoins, and it has also become 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 likened to one of the largest segments in the traditional financial world - interest rate derivatives. This is a market of over $500 trillion, and even capturing a tiny fraction of this market represents billions of dollars in opportunities.

Most DeFi platforms only offer floating yields, which inevitably exposes users to market fluctuations. However, Pendle has introduced fixed-rate products through a transparent and composable system. This innovation has reshaped the $120 billion DeFi market landscape, making Pendle a dominant yield protocol. In 2024, Pendle's TVL grew more than 20 times, currently holding over half of the yield market, which is five times that of its second-largest competitor.

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

Finding the Fit: From LST to Restaking

Pendle gained early market attention by addressing a core issue in DeFi - the volatility and unpredictability of yields. Unlike some lending platforms, Pendle allows users to lock in fixed returns by separating principal from yield.

With the rise of liquid staking tokens (LST), Pendle's adoption rate has surged to help users unlock the liquidity of staked assets. In 2024, Pendle successfully captured the narrative of restaking (Restaking) - its eETH liquidity pool became the largest pool on the platform just days after its launch.

Pendle now plays a key role in the entire on-chain yield ecosystem. Whether providing hedging tools for volatile funding rates or acting as a liquidity engine for yield-bearing assets, Pendle has unique advantages in growth areas such as liquidity re-staking tokens (LRT), real-world assets (RWA), and on-chain money markets.

Pendle V2: Infrastructure Upgrade

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

The AMM of Pendle V2 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 ), which 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 has added order book functionality, providing an alternative price discovery mechanism when the AMM price range is exceeded.

For liquidity providers (LP), Pendle V2 offers a stronger protection mechanism. The fund pools are now composed of highly correlated assets, and the AMM design minimizes impermanent loss to the greatest extent, especially for LPs holding to expiration - in V1, the lack of specialization in the mechanism made LPs' yield outcomes harder to predict.

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

The Pendle project’s expansion to Solana, Hyperliquid, and TON marks a key turning point in its 2025 roadmap. So far, Pendle has always been limited to the EVM ecosystem - even so, Pendle has captured over 50% of the market share in the fixed income track.

However, the multichain of cryptocurrencies has become a trend. Through the Citadel strategy, it breaks through the EVM island, and Pendle will reach new pools of capital and user groups.

Solana has become a major hub for DeFi and trading activities - January's TVL reached a historical peak of $14 billion, with a strong retail base and a rapidly growing LST market.

Hyperliquid, with its 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 successfully deployed, these measures will significantly expand Pendle's total addressable market. Capturing fixed income capital flows on non-EVM chains could bring in hundreds of millions in incremental TVL. More importantly, this move will solidify Pendle's position not only as an Ethereum native protocol but also as an industry leader in DeFi fixed income infrastructure across major public chains.

Embrace Traditional Finance: Build a Compliant Revenue Access System

Another key initiative in Pendle's 2025 roadmap is the launch of a KYC-compliant version of Citadel specifically designed for institutional capital. This solution aims to connect on-chain yield opportunities with traditional regulated capital markets by providing a structured and compliant access channel for crypto-native fixed-income products.

The program will collaborate with certain protocols and be managed by licensed investment managers in 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 a familiar legal framework.

The global fixed income market exceeds $100 trillion. Even if institutional funds allocate a very small proportion to on-chain assets, it could lead to an inflow of billions of dollars. The EY-Parthenon 2024 survey shows that 94% of institutional investors recognize the long-term value of digital assets, and more than half are increasing their allocation.

McKinsey predicts that the tokenization market could reach a scale of $2-4 trillion in the 2030s. 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 is tokenized government bonds or yield-bearing stablecoins, Pendle can serve as the fixed income infrastructure layer for institutional-level strategies.

Islamic Finance: $4.5 Trillion New Opportunities

Pendle also plans to launch the Citadel solution in accordance with Islamic law, serving the $4.5 trillion global Islamic finance market - 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 create yield products that comply with Islamic law, which may resemble Islamic bonds ( Sukuk ).

If successful, this Citadel will not only expand Pendle's geographical coverage but also validate the ability of DeFi to adapt to a diversified financial system - thereby consolidating Pendle's position as a global fixed income infrastructure on-chain market.

Entering the Funding Rate Market

Boros, as one of the most important catalysts in the Pendle 2025 roadmap, aims to introduce fixed-rate trading into the Perptual Futures funding rate market. Although Pendle V2 has established its dominance in the spot yield tokenization market, Boros plans to expand its business scope 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 lacks hedging tools.

Boros plans to provide more stable returns for certain protocols by implementing fixed funding rates - 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 it has also achieved an upgrade in protocol positioning - transforming from a DeFi yield application to an on-chain interest trading platform, its functional positioning is now comparable to the interest trading desks of some large financial institutions in traditional finance.

Boros has also strengthened Pendle's long-term competitive advantage. Unlike chasing market hotspots, Pendle is laying the foundation for future yield 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 solidify its core position as the fixed-income infrastructure of DeFi.

Core Team and Strategic Layout

Pendle Finance was founded in mid-2020 by anonymous developers TN, GT, YK, and Vu, and has received investments from several top institutions.

Financing Milestone:

• Private Placement Round ( April 2021: Raised $3.7 million, with participation from several well-known investment institutions.
• IDO)2021 April (: raised $11.83 million at a price of $0.797 per token;
• A certain trading platform Launchpool)2023 July (: distributed 5.02 million PENDLE) accounting for 1.94% of the total supply (;
• A certain institution strategically invested ) in August 2023: Accelerating ecological development and cross-chain expansion; the amount is undisclosed (.
• The Arbitrum Foundation funded ) in October 2023: received 1.61 million USD for Arbitrum ecosystem development;
• A certain institution strategically invested ( in November 2023: to promote long-term growth and institutional adoption, with the amount undisclosed.

The ecological cooperation matrix is as follows:

• Base: Deploy to the Base network, connect native assets and expand fixed income infrastructure;
• Anzen)sUSDz(: Launching the RWA stablecoin sUSDz, enabling fixed income trading linked to real-world returns;
• Ethena)USDe/sUSDe(: Integrated high APY stablecoin, connecting native crypto yields and enhancing DeFi collaboration;
• Ether.fi)eBTC(: Launching the first native BTC yield pool, breaking through ETH asset boundaries.
• Berachain)iBGT/iBERA(: As one of the first infrastructures to settle in, it builds a fixed income framework through native LST.

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