He believes this is due to the growing interest in restaking

DeFi protocol developer Pendle explains the reasons for TVL’s growth to $998 million

09.02.2024 - 10:47

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1 min

What’s new? The total value locked (TVL) of the Pendle DeFi protocol has reached $998,4 billion, according to analytics platform DeFiLlama. A Pendle developer under the nickname RightSide stated that a major factor in the recent TVL increase was the growing interest in Liquid restaking token finance (LRTFi).

CoinDesk’s material

LRTFi is a new area in the decentralized finance sector that provides liquidity to staked assets through the issuance of Liquid Staking Tokens (LRTs). Through restaking, users can use LRTs in various applications while the original coins are locked down to earn rewards for participating in the network.

What else is known? RightSide emphasized that Pendle is one of the LRTfi pioneers, offering users a unique proposition to speculate on yields and points of the EigenLayer restaking protocol.

Pendle provides users with its own automated market maker (AMM) and various yield management strategies. Income-generating assets are divided into a principal token (PT) and a yield token (YT), allowing for fixed or flexible returns.

PENDLE is a utility token that is used to stimulate liquidity, management, and charging fees.

At the time of writing, PENDLE is trading at $2,87 on Binance, having lost 4,74% over the day, while adding 1,5% over the week (data from the aggregator CoinGecko).

On July 3, the PENDLE exchange rate rose by 65,4% overnight after listing in Binance’s Innovation Zone. Spot trading of the asset is available in pairs with BTC, as well as USDT, and TUSD stablecoins.

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