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Pendle review 2026
TL;DR
Pendle is a protocol for trading the future yield of DeFi assets. The summer was about expansion: a native launch on Monad on 19 June, then XLayer on 11 August, where Pendle immediately became the network's second-largest protocol, and a first market on Robinhood Chain on 4 September. TVL is $1.24B on DefiLlama, up from $1.13B in June. The staking model has paid off: by July over 100M PENDLE was staked, around 36% of supply versus around 20% under the old scheme, and emissions were cut 71%. The token rose from $1.25 in June to $2.03.
Go to PendleWhat is Pendle
Pendle is a yield trading protocol launched in June 2021. The idea is simple: split any yield-bearing asset into two parts. The Principal Token pays a fixed yield to maturity, like a deposit with a known rate. The Yield Token gives you a claim on future yield – a directional bet on rates rising.
The sPENDLE staking model, launched on 20 January 2026 to replace the clunky vePENDLE, has paid off by July. Over 100M PENDLE is staked, around 36% of supply, versus around 20% under the old scheme with locks of up to four years. Emissions were cut 71%, beating the original 30% target, and over 1.96M PENDLE has been bought back from the market and distributed to stakers. Exiting sPENDLE takes 14 days, or you can exit instantly for a 5% fee.
Pendle expanded across networks noticeably over the summer. A native launch on Monad on 19 June with two AUSD stablecoin pools. A launch on XLayer on 11 August: TVL there grew 268% to $37.5M in a week, making Pendle the network's second-largest protocol. A first market opened on Robinhood Chain on 4 September. As of 10 September, TVL distribution on DefiLlama looks like this: Ethereum $667M, Monad $221M, Arbitrum $144M, Plasma $88M, XLayer $69M. A year ago two of these networks weren't on the list at all.
A PT Looping beta launched on 17 July – automated leverage on PT tokens through Morpho and Aave, with a starting cap of $500K per market. By end of August the incentive cap was raised to $15M across two pools. On 27 July Pendle connected Claude and ChatGPT to search and execution for yield strategies on the protocol.
Boros, a separate product for trading funding rates, held open interest of around $151M by early August, up from $104M two weeks earlier.
Supported networks
Pros and cons
Pros
- +Over 100M PENDLE staked, around 36% of supply, emissions cut 71%
- +Native launches over the summer: Monad, XLayer, and Robinhood Chain
- +Pendle became XLayer's second-largest protocol on day one
- +PENDLE bought back from the market: over 1.96M tokens distributed to stakers
- +Never been hacked – one of the strongest security records in DeFi
Cons
- –$1.24B TVL – well below the 2025 peaks
- –Complex PT and YT mechanics – not something you'll grasp right away
- –PT yield locks in at purchase: if rates rise, you earn less
- –PT Looping is leverage, and leverage amplifies losses too
- –Pseudonymous team – the founder works under a pseudonym
Fees
Swaps: around 0.1%, the rate depends on proximity to expiry. Protocol fee: 3% of YT yield. Gas is separate. No fees on deposits or withdrawals from pools beyond gas. Instant exit from sPENDLE: 5% fee.
Security
Pendle has been audited by Ackee, Dedaub, ChainSecurity, and Code4rena. The protocol has never lost user funds in its history – one of the strongest security records in DeFi. We found no exploits, lawsuits, or regulatory action over summer 2026. Contracts use a proxy pattern with timelocked upgrades. Worth flagging separately: PT Looping. The protocol itself isn't the issue, but leveraged strategies on PT tokens carry their own liquidation risk, which is exactly why the team raised the starting caps gradually.
Who it's for
Pendle is for people who already know their way around DeFi and want to either lock in a rate through PT or bet on rates rising through YT. The staking model has become humane: you can exit in two weeks instead of waiting four years. If PT Looping tempts you, remember it's leverage with all the consequences that come with it.
FAQ
What is sPENDLE, and how is it better than vePENDLE?
It's the PENDLE staking model launched on 20 January 2026 to replace vePENDLE and its lock of up to four years. You can exit in 14 days, or instantly for a 5% fee. The results show in the numbers: by July over 100M PENDLE was staked, around 36% of supply, versus around 20% under the old scheme.
Which networks does Pendle run on?
Most of the volume is on Ethereum ($667M). Over the summer, native launches added Monad (19 June, $221M), XLayer (11 August, $69M), and Robinhood Chain (4 September). Also Arbitrum at $144M and Plasma at $88M. Figures from DefiLlama, 10 September 2026.
What is PT Looping?
The beta launched on 17 July 2026. It's automated leverage on PT tokens through Morpho and Aave. The starting cap was $500K per market, and by end of August the incentive cap rose to $15M across two pools. It's a tool for experienced users: leverage amplifies more than just gains.
What happened to PENDLE emissions?
They were cut 71%, beating the original 30% target. On top of that, over 1.96M PENDLE has been bought back from the market and distributed to stakers. The token rose from $1.25 to $2.03 over the summer.
Is Pendle safe?
The protocol has never been hacked, with audits from four firms. There were no incidents over summer 2026. The main risk here isn't the code, it's the instruments themselves: YT is a bet on a rate, and PT Looping is leverage.
CoinMagnetic Team
Crypto investors since 2017. We trade with our own money and test every exchange ourselves.
Updated: September 2026
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