Pendle V2 protocol
Overview
Pendle V2 is the core protocol behind Pendle Finance, which describes itself as the world's largest crypto yield trading platform. It works by tokenising yield: a yield-bearing asset is first wrapped into a Standardised Yield (SY) token, which is then split into a Principal Token (PT), representing the redeemable principal at maturity, and a Yield Token (YT), representing the stream of yield until maturity. Because PT trades at a discount to its redemption value, buying PT locks in a fixed yield with no lockup and no liquidation risk, while buying YT is a leveraged long on future yield. V2 pairs these with a purpose-built AMM optimised for trading PT against SY as maturities approach, and the protocol adds vePENDLE governance for directing incentives. The V2 contracts are written almost entirely in Solidity, are published as the npm package `@pendle/core-v2`, and have been audited by six separate auditors, with reports in the repository's audits folder and four whitepapers published in Pendle's resources repository. Pendle has since added a second product line, Boros, for margin-traded yield exposure including off-chain rates. Its published backers include Binance, OKX, Bybit, Galaxy Digital, Amber, Fasanara Digital and Republic Digital. Pendle V2 replaced the original Pendle design with the SY/PT/YT token model and a maturity-aware AMM. The protocol later expanded beyond spot yield trading with Boros, a margin product for trading yields including off-chain rates.
Within the DeFi Intel graph, Pendle V2 connects to 12 tracked entities, most strongly to Penpie, Pendle Finance, PT-eETH (ether.fi).
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 10 of 12 total).
| Relation | Connected entity | Confidence |
|---|---|---|
built_on | Penpie | 90% |
developed | Pendle Finance | 90% |
lists_market | PT-eETH (ether.fi) | 90% |
lists_market | PT-sUSDe (Ethena) | 90% |
deployed_on | Pendle on BNB Chain | 85% |
deployed_on | Pendle on Arbitrum | 85% |
lists_market | PT-rsETH (Kelp) | 85% |
lists_market | PT-ezETH (Renzo) | 85% |
deployed_on | Pendle on Optimism | 80% |
deployed_on | Pendle on Mantle | 80% |
Frequently asked questions
What is Pendle V2?
Pendle V2 is a yield tracked in the DeFi Intel knowledge graph. It is connected to 12 other tracked entities, most strongly to Penpie, Pendle Finance, PT-eETH (ether.fi).
What type of entity is Pendle V2?
Pendle V2 is classified as a yield (protocol) in the DeFi Intel knowledge graph.
What is Pendle V2 connected to?
In the DeFi Intel knowledge graph, Pendle V2 is linked to 12 other tracked entities, most strongly to Penpie, Pendle Finance, PT-eETH (ether.fi).
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