Pendle’s good contracts are among the many largest holders of Ethena’s artificial greenback USDe, in addition to a number of liquid restaking tokens corresponding to wrapped eETH and ezETH.
Pendle’s whole worth locked denominated in ETH is close to its all-time excessive, with over 1.5 million ETH on the time of publication.
(Pendle)
Posted Might 22, 2024 at 1:58 pm EST.
Decentralized finance platform Pendle reached an all-time excessive in whole worth locked (TVL) denominated in U.S. {dollars} on Wednesday, an indication of considerable progress for the almost three-year-old protocol, which is understood for its token customary for yield producing mechanisms.
In keeping with blockchain analytics agency DefiLlama, crypto customers have locked greater than $5.78 billion value of crypto belongings into the protocol on the time of publication. That’s a 40% improve from $4.08 billion at first of Might and a 2,350% bounce because the begin of 2024 when the determine stood at $233.67 million.
Pendle’s TVL has risen to its all-time excessive in greenback phrases partly as a result of ETH has jumped almost 26% previously week. ETH is now buying and selling round $3,740 on account of elevated optimism about the US Securities and Trade Fee doubtlessly approving spot ether exchange-traded funds (ETFs).
The DeFi protocol’s TVL denominated in ETH, whereas not at its peak, is nearing its all-time excessive of 1.6 million ETH, first reached on April 25. At presstime, Pendle TVL in ETH stands at over 1.55 million ETH.
Pendle Finance creates a yield marketplace for crypto customers by separating yield-bearing cryptocurrencies into principal and yield tokens. Customers can earn mounted yield, go lengthy yield by buying extra yield tokens, and supply liquidity to the platform.
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“Pendle has develop into a lovely place for speculators to deposit and leverage their ETH and different belongings to earn outsized returns in yield or factors,” wrote Edward Wilson, the social media supervisor for onchain intelligence agency Nansen, in a Telegram message to Unchained. The protocol’s TVL exhibits that “the demand for Pendle’s merchandise stays very excessive.”
A Widespread Parking Spot For Crypto-Belongings
Along with the value appreciation of ETH, Pendle’s achievement in locked worth stems largely from customers depositing quite a lot of totally different crypto belongings into the DeFi protocol in an effort to earn a yield.
Pendle’s eETH smart contract holds probably the most wrapped eETH of all good contracts holding wrapped eETH, the flagship product of native Ethereum liquid restaking protocol EtherFi. Per Nansen, Pendle’s eETH good contract holds 365,503 wrapped eETH tokens, value about $1.4 billion, representing about 31.94% of the overall provide wrapped eETH.
A different Pendle smart contract can be the third-largest holder of liquid restaking protocol Renzo’s ezETH, with over 162,504 tokens value about $594.9 million, trailing behind the good contracts for Zircuit’s liquid staking token pool and Renzo’s lockbox, per Nansen.
And another Pendle smart contract is the third-largest holder of Ethena’s artificial greenback USDe, with over $369 million held. That quantities to roughly 14.48% of the overall USDe provide, information from Nansen exhibits.
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Every of those tokens – eETH, ezETH, and USDe – if deposited into Pendle will fetch the depositor double-digit yields, in response to DefiLlama. Pendle holding massive quantities of liquid restaking tokens highlights how its “TVL has grown to the place it’s now because of the factors meta popularized by EigenLayer, permitting customers varied choices relying on their threat urge for food,” Pendle developer RightSide wrote in a Telegram message to Unchained.
EtherFi and Renzo, which each collaborate with EigenLayer, haven’t solely carried out a factors program, but additionally carried out airdrop allocations for early adopters.
“Pendle stays one of many avenues to supply a few of the highest yields for $ETH and stablecoins ($USDe) … attracting capital from varied customers in DeFi whether or not retail, DeFi builders corresponding to Silo, or institutional gamers,” RightSide added.
The value of PENDLE has dropped 5.8% previously 24 hours however elevated 37.6% previously seven days to commerce at $6.00, in response to CoinGecko.
