Pendle is a DeFi protocol that tokenizes yield into two assets: Principal Token (PT) and Yield Token (YT). This enables fixed yield (via PT) and variable yield trading (via YT).

How do users earn with Pendle?

You can buy PT for fixed yield until maturity, trade YT for leveraged exposure to variable yields, or provide liquidity to Pendle pools.

What are the risks of Pendle?

Risks include smart-contract vulnerabilities, market illiquidity, and strategy complexity. Yield token prices may be highly volatile.

Pendle Review 2025 — Tokenized Yield Trading

Name: Pendle (Tokenized Yield)
Brand: Pendle
Availability: InStock
Rating: 4.5 (1 reviews)

Deep dive into Pendle: how tokenized yield works, what fixed vs variable yield opportunities exist, and the risks to be aware of in 2025.

Start with Pendle

What’s New in 2025

Pendle expanded support to more yield-bearing assets, integrated with LSTs (like stETH) and LSDfi protocols, and improved UX for LPs and traders.

How Pendle Works

Deposit yield-bearing tokens (e.g. stETH, aUSDC) into Pendle.
Receive PT (Principal Token) and YT (Yield Token).
PT = claim on the principal at maturity (fixed yield). YT = claim on variable yield until maturity.
Trade PT and YT independently on Pendle AMM for strategy flexibility.

Yields & Opportunities

Fixed Yield: buy PT below face value, redeem at maturity for predictable APR.
Variable Yield: trade YT for leveraged yield exposure.
Liquidity Pools: provide PT+YT liquidity, earn swap fees and incentives.

Risks

Smart-contract exploits or bugs.
Liquidity risk: PT/YT prices may move sharply.
Complexity: advanced strategies may confuse beginners.

Pendle Integrations

Pendle is increasingly integrated with DeFi dashboards, aggregators, and LSD/LRT protocols. Liquidity for PT and YT pairs is expanding across chains.

Pendle vs Alternatives

Lido: simple ETH staking with liquidity.
Rocket Pool: decentralized ETH staking.
Pendle: advanced yield strategies and tokenization of yields.

Pros & Cons

Pros

Innovative yield tokenization (PT + YT)
Access to fixed yield in DeFi
Advanced strategies for power users

Cons

Higher complexity than traditional staking
Liquidity risk in PT/YT markets
Smart-contract vulnerabilities

User Feedback

“Pendle lets me lock in fixed yields I can’t find elsewhere in DeFi.” — Diego, Spain

“YT trading is powerful but volatile — not for the faint-hearted.” — Mei, Singapore

Our Verdict

Pendle is one of the most innovative yield protocols in 2025. It opens up fixed yield opportunities in DeFi and advanced trading strategies. Recommended for experienced users who understand DeFi mechanics and risk management.

Start with Pendle Fixed yields • Variable yields • DeFi strategies