Pendle Evolves Beyond Interest Rate Market, Becomes Key Institutional Tool
Pendle Evolves Beyond Interest Rate Market, Becomes Key Institutional Tool
🎯 DeFi's New Institutional Playground
Pendle has transformed from a simple interest rate market into a comprehensive yield management platform. Major institutions are now integrating Pendle into their core strategies:
- Amber Group ($1T trading volume) uses it for treasury management
- Caladan ($50B annual volume) leverages it for fixed yield products
- Fasanara Digital ($4.5B AUM) utilizes it for structured products
The platform enables institutions to:
- Manage interest rate risk
- Price and evaluate future yields
- Navigate market volatility through hedging
- Access both fixed and floating yields
Pendle's Citadels initiative aims to expand institutional adoption further, offering deep liquidity and battle-tested infrastructure across BTC, ETH, and stablecoin derivatives.
The end game of DeFi is to become so seamless and reliable that it blends effortlessly with traditional finance—empowering both everyday users and institutional players alike. Today, Pendle has become a core component of on-chain treasury strategy for institutions like Amber
The goal of Citadels is to accelerate institutional adoption of Pendle's fixed yield suite, among various strategies. @FasanaraDigital stands out as one of the DeFi advocates, having achieved market-leading risk-adjusted returns with Pendle. Institutional asset managers like
Existing in a cryptocurrency bubble makes it easy to lose perspective of how small we are compared to the larger financial space. Even after establishing our foothold in the top 10 DeFi protocols and the de facto protocol in the yield category, Pendle's 2024 trading volume would
While DeFi users embrace yield and volatility, institutional capital chases yield and 𝑐𝑒𝑟𝑡𝑎𝑖𝑛𝑡𝑦. With Pendle, you can have both. @caladanxyz is a digital asset market maker that facilitates over $50b in annual trading volume, with our fixed yield products now a core
Pendle is more than just an interest rate market, it’s become an essential tool for institutions to manage their interest rate risk; a “CoinGecko” of yield for users to price and evaluate future yield and even underlying protocol valuation. It’s great to see institutions like
Pendle is quietly becoming DeFi's fixed income layer. What began as a niche yield-splitting protocol is now building a global distribution network for structured yield through what they call Citadels. For years, DeFi’s “yield” was synonymous with floating rates. Protocols like
fxSAVE Launches on Pendle: New Stablecoin Vault with Auto-Compounding Yields
f(x) Protocol V2 has launched fxSAVE, a Delta Neutral Stablecoin Vault now integrated with Pendle. The vault offers: - Auto-compounding yields from PERP trading commissions (~8.58% APY) - Fixed APY options through PT - Leveraged exposure opportunities - Additional LP fees and $PENDLE rewards The vault is now accessible on Pendle's platform, expanding the protocol's stablecoin offerings in response to market demand. [Trade fxSAVE on Pendle](https://app.pendle.finance/trade/pools/0x9bc2fb257e00468fe921635fe5a73271f385d0eb/zap/in?chain=ethereum)
Pendle Updates Fee Structure Ahead of Boros Release
Pendle announces key changes to its fee structure starting May 2025: - vePENDLE yield will be distributed in stablecoins - YT fees increasing from 3% to 5% (effective May 2nd, 2025 00:00 UTC) - All fees will go to vePENDLE holders These changes are expected to: - Boost protocol revenue by ~30% - Increase vePENDLE base APY by ~60% **Important**: Users can still claim YT proceeds at 3% fee until May 2nd. The fee change supports long-term protocol sustainability with minimal user impact.
Pendle Principal Tokens Moving Closer to Aave Integration
Pendle's Principal Tokens (PTs) are progressing toward integration with Aave, following a successful initial vote. The next phase requires final AIP confirmation. - First asset planned: Ethena PT-sUSDE-29MAY2025 - Integration will enable: * Fixed Yield Looping * Borrowing against PTs * Enhanced yield opportunities The proposal passed the first voting round on Snapshot, marking a significant step toward expanding Aave's supported assets. [View full proposal](https://snapshot.box/#/s:aavedao.eth/proposal/0xc039953e4f18804bb017876d27621da1ab3e4de53acd3b32d0f1fe94d4bbb6a0)