Pendle has rapidly emerged as one of the leaders in the decentralized finance (DeFi) space. Its share of the total yield-bearing stablecoin supply has ballooned to an impressive 30%. Pendle has a TVL of around $4.88 billion. Having recently hit the milestone of 280,000 active users, it is spurring creative new approaches to yield management and trading. The platform has made smart strategic move integrations into various Layer 2 solutions and other alternative blockchains. Its power to produce steady revenue further underscores its rising power in the DeFi ecosystem.

Strategic Expansion and Cross-Chain Dominance

Pendle’s $DEFI distribution equally exemplifies its massive cross-chain expansion. It has a solid footing on five EVM (Ethereum Virtual Machine) chains Ethereum, Arbitrum, Base, Sonic and BNB. This multi-chain strategy allows users across different ecosystems to access Pendle's unique yield management capabilities, enhancing the platform's reach and utility.

The platform’s TVL is largely focused on Ethereum, which makes up almost $4.5 billion. This large imprint on Ethereum is in part due to the platforms’ roots, as well as the large liquidity present on the network. As evidenced by the presence on other chains such as Arbitrum, Base and Sonic, the commitment to diversification is major. In doing so, this strategy seeks to profit from developing DeFi markets.

Pendle opens the door for having stake in the growth of permissioned yield-bearing stablecoins, like iUSDe by Ethena. This backing for innovative stablecoin projects significantly boosts Pendle’s appeal, making it available to users who can access stablecoins’ potentially higher yields. Having PT-USDe as collateral in the Aave v3 protocol further solidifies Pendle’s position. This strategic move further solidifies Pendle as an important infrastructure provider for yield-bearing assets.

Revenue Model and Financial Stability

Pendle has proved a steady source of revenue since the launch in June of 2024, bringing in more than $4 million monthly on average. This consistent revenue stream underscores the platform's sustainable business model and its ability to generate value for its users and stakeholders.

The platform produced annualized gross revenue numbers of $22.32m and $42.88m. These numbers show its huge growth trajectory and the overall adoption of the market. Pendle expects to derive the majority of its revenues from a 5% take rate on the yield generated by assets tokenized on its platform. It generates revenue by collecting trading fees. This dual-revenue model contributes to the holistic income stream. Because of this, the platform is much more resistant to volatility in trading volume or yield rates.

Pendle’s strong design is most evident in its long-term profitability. Beyond this success, it represents an incredible market demand for its services that exists even without the crutch of artificial token incentives. This long-term financial stability is the key for the platform’s long-term implementation growth and sustainability.

Influence on Ethena and Market Impact

Pendle played a pivotal role in helping Ethena scale from zero to over $3 billion in issuance in just four months. This exponential growth is a testament to the powerful platform Uniswap has built, which serves as an adoption and liquidity engine for new DeFi projects.

Pendle powered half of Ethena’s growth and activity. This uniquely positions it to have a truly powerful impact in driving shared success of partner protocols. This mutually beneficial relationship helps both platforms grow. Pendle provides Ethena with an attractive distribution channel. Ethena enhances Pendle’s platform with innovative, yield-bearing assets.

Pendle is an instrumental part of Ethena’s growth. Its contributions have far-reaching effects on the DeFi ecosystem, lighting the fire for growth and igniting innovation. This focus has made the platform a magnet for some of the most promising projects. That ensures their ongoing success and cements its promise as a leader in yield management.

Future Outlook and Expansion Plans

Pendle made history during the month of September 2024. The remaining team and investor tokens were all unlocked, and they achieved this without the crutch of artificial token incentives. This milestone is illustrative of the project’s deep commitment to transparency and decentralization. Combined, it lowers the opportunity for bad actors to do token dumps and incentivizes a more equitable distribution of governance rights.

The platform is moving towards permissionless listings of assets on its marketplace, with plans for further expansion, including Solana support anticipated for Q3 2025. This shift to permissionless listings will allow even broader access to Pendle’s platform. Overall, it will enable a larger set of sophisticated projects to effectively register their assets and become magnets for new liquidity.

The upcoming support for Solana in late Q3 of 2025 is a smart move to broaden their market into one of the fastest growing blockchain ecosystems. Solana's high throughput and low transaction costs make it an attractive platform for DeFi applications, and Pendle's integration with Solana could significantly expand its user base and TVL.