Pendle Finance, a decentralised finance (DeFi) platform that provides users with returns in the form of tradeable tokens, is capitalising on the rising real-world assets (RWA) trend with a new offering that generates profits from established industries.
In addition to Arbitrum, BNB Chain, and Optimism networks this year, Pendle was first introduced on Ethereum in November of last year.
The makers of Pendle insisted that the RWA product will leverage MakerDAO’s Boosted Dai Savings (sDAI) and Flux Finance’s fUSDC stablecoin, both of which produce returns from the traditional financial sectors. In order to construct a virtual investment system tied to physical assets like real estate, precious metals, pieces of art, and collectibles, RWA tokenization is necessary.
A developing area of cryptocurrency is RWA. This will allow DeFi to deploy these tokenized assets for usage in decentralised applications (dapps) and give users on-chain access to traditional financial products like U.S. Treasury Bonds.
According to TN Lee, co-founder and CEO of Pendle, “Fixed Yield and RWA have some of the largest addressable markets that remain untapped in DeFi.” I am convinced that they will be essential in luring significant offchain institutional investors onto the blockchain.
“Yes, RWA is already in DeFi, and Pendle is now able to provide a set of tools that enables you to effectively hedge or manage these yields. Interest rate futures, swaps, fixed income and all of these things that TradFi institutions adore are currently available, continued Lee.
Pendle’s total locked value (TVL), which is little under $120 million, may increase as a result of the offering. PENDLE token was up more than 10% at 60 cents at the time of writing.