Yield platform Pendle reaches $4 billion in TVL and $10 billion in trading volume

The total value of the cryptocurrency being held Shuttle SHUTTLE

+0.68%
has reached $4 billion as the yield trading platform continues to turn heads.

The core idea of ​​Pendle is that it splits return-bearing assets into the underlying asset and the return, both of which can be traded separately. This concept seems to have gained popularity as trading on the platform has reached $10 billion, according to the project analytics dashboard – with a trading volume of more than $400 million in a single day on April 2.

Pendle has benefited significantly from the ongoing ether replenishment boom as most of the trading focuses on ether replenishment tokens associated with ether and associated yield.

The influx of these cash withdrawal platforms has boosted Pendle’s value. According to Dune Analytics, the yield platform’s weETH holdings – the packaged version of eETH from liquid withdrawal platform EtherFi – increased 13% in the past week. facts aggregated by Henrystats. Pendle now owns 263,442 weETH ($920 million). Similar inflows have come from Renzo, another fluid withdrawal protocol.

Trading in tokens related to the synthetic dollar protocol Ethena has also been important, as it has attracted a lot of attention in addition to its own growth and token launch. Revenue pools for the stablecoin USDe recently launched on Pendle have contributed more than $500 million in TVL.

“We have benefited greatly from the recent surge in interest in asset repossessions and Ethena. Looking ahead, our priority is to continue to deliver features and products that meet the needs of our users,” said Pendle CEO, based at TN .

The majority of trading on Pendle takes place on Ethereum, but the project is gaining some traction on Ethereum Layer 2 networks such as Arbitrum and Mantle.

Pendle enables leveraged point trading

Pendle also lets users transact with their points. Points are where projects allocate loyalty points to users for activities such as trading volume, which can later be converted into tokens if an airdrop needs to occur. However, such air drops are guaranteed and the potential value to be extracted from these points is uncertain.

In response, Pendle products allow users to hedge against or utilize their points up to 128 times. Points trading accounts for approximately 10% of the total value locked on the platform.

“Pendle’s point farming strategies launched this year have seen tremendous growth as they allow airdrop farmers to take advantage in the form of purchasing yield tokens that provide points at a fraction of the cost of the underlying principal , often with added bonus multipliers) for prominent re-withdrawal protocols such as EtherFi and Renzo,” says George Calle, head of research at The Block.

Thanks to Pendle’s rapid growth, the price of the Pendle token has grown steadily this year. The token started this year just above the dollar, according to The Block’s Price Page, and recently broke $5.