Hey there! If you’ve been keeping an eye on DeFi, you’ve probably heard of Pendle Finance ($PENDLE). A recent post on X by 0xMrDiaz dives deep into Pendle’s 2025 roadmap, and it’s packed with exciting updates. Let’s break it down in a way that’s easy to digest, even if you’re new to DeFi or yield trading.

What Makes Pendle Finance Stand Out in DeFi?

Pendle Finance is a DeFi protocol that’s all about giving users control over their yields. Unlike most DeFi platforms like Aave or Compound, where yields can be a rollercoaster due to market volatility, Pendle lets you lock in fixed returns. It does this by splitting yield-bearing assets into two parts: Principal Tokens (PT) and Yield Tokens (YT). Think of PT as your base investment and YT as the future profits you can trade separately. This setup lets you either secure predictable returns or speculate on yield changes—pretty neat, right?

In 2024, Pendle became a big player in DeFi, growing 20x and capturing over 50% of the total value locked (TVL) in the yield sector. That’s five times more than its closest competitor! It’s not just a yield protocol anymore—it’s becoming a core piece of DeFi infrastructure, helping power major trends like liquid staking tokens (LSTs), restaking, and yield-bearing stablecoins.

Pendle V2: A Game-Changer for Yield Trading

Pendle’s V2 upgrade is a big part of its 2025 strategy. It introduces Standardized Yield (SY) tokens, which make it easier to wrap different yield-bearing assets into a unified format. This means smoother integration with other DeFi platforms. V2 also revamps the automated market maker (AMM) system, which is the tech behind trading on Pendle. The new AMM is designed specifically for PT-YT trading, with features like:

• Dynamic parameters (rateScalar and rateAnchor) to adjust liquidity over time, leading to better pricing and lower slippage (aka less loss when trading).
• Native TWAP oracles for on-chain price feeds, reducing the risk of manipulation compared to V1’s external oracles.
• Concentrated liquidity to minimize impermanent loss for liquidity providers (LPs)—a common headache in DeFi where LPs can lose value due to price swings.

For LPs, V2 is a win because it pairs highly correlated assets in pools, making returns more predictable. If you’re providing liquidity, you’re less likely to get burned by market volatility.

Going Multi-Chain: Solana, Hyperliquid, and TON

Pendle has been a star in Ethereum’s ecosystem, but it’s now breaking out of the EVM (Ethereum Virtual Machine) bubble. In 2025, Pendle plans to expand to Solana, Hyperliquid, and TON through its Citadel deployments. Why does this matter?

• Solana is a DeFi hotspot with over $14 billion in TVL at its peak in January 2025. It’s got a huge retail user base and a growing LST market, making it a perfect fit for Pendle’s fixed yield products.
• Hyperliquid offers vertically integrated perpetual futures infrastructure, while TON taps into Telegram’s massive user base. Both are high-growth ecosystems that lack sophisticated yield tools—Pendle could fill that gap.

This multi-chain move could bring in hundreds of millions in new TVL and cement Pendle’s role as DeFi’s go-to fixed income layer across different blockchains.

Citadel: Bringing Institutions and Islamic Finance Onboard

Pendle isn’t stopping at crypto-native users—it’s eyeing traditional finance (TradFi) and niche markets like Islamic finance. Through its Citadel initiatives, Pendle is building bridges to these massive sectors.

Citadel for TradFi

Pendle’s KYC-compliant Citadel targets institutional investors by offering structured access to on-chain yield products. It’s partnering with protocols like Ethena to create special purpose vehicles (SPVs) managed by regulated investment managers. This setup tackles big hurdles for institutions, like custody and compliance, making it easier for them to dip their toes into DeFi.

The global fixed income market is worth over $100 trillion. Even a tiny shift toward on-chain adoption could mean billions in inflows for Pendle. A 2024 EY-Parthenon survey found that 94% of institutional investors see long-term value in digital assets, with over half increasing their allocations. Pendle’s Citadel could be the gateway they need.

Citadel for Islamic Finance

Pendle is also launching a Shariah-compliant Citadel to tap into the $4.5 trillion Islamic finance market, which spans over 80 countries and has been growing at a 10% CAGR. Islamic finance has strict rules—no interest (riba) and a focus on ethical investments. Pendle’s PT/YT structure could be adapted to create yield products that align with these principles, similar to Sukuk (Islamic bonds).

If this works, Pendle could open DeFi to a whole new audience, especially in regions like Southeast Asia, the Middle East, and Africa, where Islamic finance is huge.

Boros: Fixed Rates for Perpetual Yields

One of the most exciting parts of Pendle’s 2025 roadmap is Boros, a new vertical focused on perpetual funding yields. Perpetual futures markets are massive—$150 billion in open interest and $200 billion in daily volume. But funding rates in these markets can be wildly volatile, creating a headache for traders and protocols.

Boros lets users lock in fixed funding rates, offering stability for big players like Ethena, which manages large-scale strategies. This opens up a multi-billion-dollar market for Pendle and positions it as the DeFi equivalent of a TradFi interest rate desk (think CME or J.P. Morgan). Since there’s no scalable funding hedge solution in DeFi or CeFi yet, Pendle has a first-mover advantage here.

Tokenomics and vePENDLE: Aligning Incentives

Pendle’s $PENDLE token is at the heart of its ecosystem. As of March 31, 2025, here’s the snapshot:

• Price: $2.57
• Market Cap: $410.6 million
• Fully Diluted Valuation (FDV)​: $725.2 million
• Circulating Supply: 161.31 million (57.3% of max supply)

Pendle’s emissions are dropping by 1.1% per week, down to 156,783 tokens per week as of March 2025. By April 2026, it’ll shift to a 2% annual inflation rate to keep incentives sustainable.

The vePENDLE system (vote-escrowed PENDLE) encourages long-term commitment. You lock your $PENDLE for up to two years to get vePENDLE, which gives you:

• Voting power in governance.
• A share of protocol fees (like 3% from yield trading and 10-30 basis points from swaps).
• Exclusive incentives and airdrops—vePENDLE holders earned ~40% APY in 2024, plus $6.1 million in airdrops in December.

This setup reduces circulating supply, supports price stability, and aligns incentives for long-term holders.

Partnerships and Backing

Pendle’s growth isn’t happening in a vacuum. It’s backed by heavyweights like Binance Labs, The Spartan Group, and Crypto.com Capital. It’s also partnered with protocols like Ethena (for USDe/sUSDe yields), Ether.fi (for BTC-native yields), and Berachain (for LSTs). These collaborations expand Pendle’s reach and bring fixed yield trading to more assets and networks.

Risks to Watch

Pendle’s not without challenges. Its complexity can scare off new users—yield trading isn’t exactly beginner-friendly. It’ll need to simplify the experience to attract a broader crowd. Also, its TVL is heavily concentrated in Ethena pools (over 60% as of 2025), which could be a risk if market trends shift. Smart contract risks, oracle reliability, and low liquidity in some pools are other hurdles to keep an eye on.

Why Pendle’s 2025 Roadmap Matters

Pendle is positioning itself as more than just a DeFi app—it’s aiming to be the fixed income layer for the entire on-chain economy. Whether it’s enabling fixed yields for retail users, providing hedging tools for institutions, or creating Shariah-compliant products, Pendle’s 2025 roadmap shows a clear vision. If it can execute while simplifying its user experience, Pendle could become a cornerstone of DeFi’s future.

Want to stay in the loop? Follow accounts like @pendle_fi and @tn_pendle on X for the latest updates. What do you think about Pendle’s plans? Let’s chat in the comments!