DeFi Drama

DeFi Yield Platform Pendle Finance Now Offers Real-World Asset Product

Pendle will use MakerDao’s boosted Savings (sDAI) and Flux Finance’s fUSDC in its first real-world assets (RWA) based product.

Pendle Finance, a decentralized finance (DeFi) platform that offers users yields in the form of tradable tokens, is jumping on the growing real-world assets (RWA) trend with a new product that derives gains from traditional sectors.

Pendle was released last November on Ethereum and has expanded to Arbitrum, BNB Chain and Optimism networks this year.

RWA tokenization revolves around establishing a virtual investment mechanism that is linked to tangible assets such as real estate, precious metals, artworks, and collectables. RWA has been a growing sector in crypto For DeFi, this would mean on-chain access to traditional finance instruments such as the U.S. Treasury Bonds, and the chance to deploy these tokenized assets for use in decentralized applications (dapps).

“Fixed Yield and RWA have some of the largest addressable markets that remain untapped in DeFi,” TN Lee, the co-founder and CEO of Pendle, shared in a message to CoinDesk. “I firmly believe these will play a key role in attracting huge, offchain institutional investors on-chain.”

“Yes, RWA is already in DeFi, and now Pendle is able to offer a suite of tools that lets you properly hedge or manage these yields. Interest rate derivatives, swaps, fixed income…all these products that TradFi institutions love, they’re already here,” Lee added.

The product could help boost the total locked value (TVL) of Pendle, which stands at just under $120 million as of Thursday. At the time of writing, PENDLE token was up over 10% at 60 cents.

“Yes, RWA is already in DeFi, and now Pendle is able to offer a suite of tools that lets you properly hedge or manage these yields. Interest rate derivatives, swaps, fixed income…all these products that TradFi institutions love, they’re already here,” Lee added.

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