Pendle reshapes finance by converting future earnings into tradable assets

Pendle Finance leads the transformation of the decentralized derivatives market, with its total lock-in value (TVL) to soaring from less than $3 billion earlier this year to more than $10 billion in September 2025. It innovatively converts principal and income tokens into PT and YT tokens, supporting various strategies from fixed income locking to speculative trading, with ROE up to 76.77% under leveraged positions. The agreement dominates the total locked value (TVL) in the earnings category and is backed by diversified assets such as Ethena’s USDe and staking derivatives. The broader DeFi trends show that AI and Zero Knowledge Proof (ZKP) are constantly inclusive in risk management and liquidity, while regulatory clarity also enhances institutional confidence.