In-depth study of Pendle 2025 Roadmap: Pendle V2 improvements, advancing Perptual Futures Hedging revenue products

In 2024, the income tokenizationprotocol Pendle successfully established its leadership position in the Decentralized Finance fixed income market, with a total lock-up volume of $5.1 billion, and the volume soared 100 times. In 2025, Pendle will further expand into the TradFi and Islamic finance markets through the strengthening of V2, the expansion of Citadels, and the contract income hedging of Boros, aiming to become the core of the global income market.

(Deep Dive: LSDFi Dark Horse Pendle Finance Introduction: An Overview of Equilibria and Penpie Protocol Features)

Pendle 2025: Towards the Apex of Decentralized Finance Yield Trading

Pendle co-founder TN recently released Pendle's 2025 Roadmap, reviewing the protocol's breakthroughs in various aspects in 2024, establishing the fixed income market, and significantly promoting the development of yield trading. Chain News has compiled a detailed translation of this.

Highlights of Pendle in 2024

The fixed income market is booming

TN First of all, it is pointed out that 2024 is a turning point for Pendle. The demand for the fixed income market has gradually been established, driving the scale of the protocol from hundreds of millions of dollars to tens of billions of dollars.

TVL ( total locked value ) has grown over 20 times: from $230 million in 2023 to the current $5.17 billion.

Occupying half of the Decentralized Finance yield market: Currently, Pendle accounts for over 50% of the yield category on DefiLlama.

Volume increased nearly 100 times: from $1.1 million per day in 2023 to $964 million per day in 2024.

In June 2024, PENDLE successfully settled $3.8 billion worth of flow-pooling derivatives at expiry, demonstrating the strong stability of the protocol.

The core engine that drives the Decentralized Finance ecosystem

At the same time, Pendle is no longer just a yield trading platform, but also an important pillar for the liquidity growth of many Decentralized Finance projects, including stablecoin protocol Ethena, stablecoin startup company Usual, L2 Arbitrum, yield protocol Zircuit, new public chain Berachain, etc.

TN stated that the Pendle principal token, PT(, has already formed a $1.2 billion economic market, accounting for 3.3% of the total collateral volume in the EVM chain lending market. On the lending protocol Morpho, 20% of the deposits come from Pendle:

Where there is yield, there is Pendle.

Pendle three major pillars of development

Further improvement of Pendle V2

TN points out that the current size of the on-chain yield market is about 17.7 billion U.S. dollars, of which only 4.97% (approximately 8.8 billion U.S. dollars) of the yield is tokenized by Pendle, indicating that there is still a lot of untapped opportunities in the market.

To expand market coverage, Pendle V2 has made the following improvements:

Open Enhancement: Open to allow community users to create their own yield markets through UI interface without technical background, making Pendle technology more accessible.

Dynamic Fees ) Adjustment: Automatically balance the cost structure of liquidity providers ( LP), users, and protocols to maintain optimal liquidity and returns.

vePENDLE Improvement: Expand the existing voting mechanism to involve more token holders and optimize the profit distribution mechanism.

These improvements will further solidify PENDLE's position as the primary revenue trading platform for Decentralized Finance.

Citadels Project: Expanding the Decentralized Finance User Landscape

Currently, Pendle's products are mainly used in the EVM ecosystem, but the global revenue market is much more than that. The Citadels program is expected to bring Pendle's earnings trading model to a broader market, targeting billions to trillions of dollars.

Pendle will establish three Citadels to further expand revenue markets:

PT for Non-EVM Ecology: Expanding to non-EVM chains such as Solana, TON, HYPE, etc., attracting more users to join.

PT for Traditional Finance (TradFi): Designed products that comply with KYC regulations, allowing institutional investors to earn crypto returns through partners like Ethena.

PT for Islamic finance market: Develop income products that meet the needs of the $3.9 trillion Islamic finance market and expand the global user base.

Boros: Hedging yield products that subvert the market

In addition, as a new product of Pendle to further expand the income market, Boros aims to solve the problem of market lack of Hedging mechanism:

As the largest derivative in the Decentralized Finance market in terms of volume, the perpetual contract market has a daily volume of over $150 billion. However, there is currently a lack of an effective hedging tool in the market to stabilize traders' profits, especially in response to the volatility of funding rates (Funding Rates).

TN pointed out that the extremely high funding rate, such as the TRUMP/USDT contract just launched, often becomes the reason for traders' hesitation due to its high trading costs.

In this way, Boros is able to provide income Hedging tools for this, allowing traders to convert floating funding rates into fixed rates to ensure stable income and reduce market risk.

Endgame: Becoming the Core of the Global Yield Market

Finally, TN emphasizes that Pendle's vision has never changed, which is to become the core protocol of the global Decentralized Finance yield market. Behind closely following market developments, Pendle also expects to cover more markets and aims to become a yield management platform for Decentralized Finance investors, institutional fund managers, and sovereign wealth funds:

In 2025, Pendle will not only expand V2, but also venture into two new verticals, Citadels and Boros. It has been a long journey, but the Pendle team is ready to embrace the challenges of the future.

This article delves into Pendle 2025 Roadmap: Pendle V2 improvement, advancing sustainable contract Hedging yield products first appeared in ChainNews ABMedia.