Introduction
Pendle, the leading protocol for on-chain yield and interest-rate markets, has reported a landmark year of growth for 2025, anchored by a 79% surge in average Total Value Locked (TVL) to $5.8 billion and the strategic launch of Boros, a pioneering funding-rate derivatives platform. This expansion, coupled with $40 million in annualized protocol revenue, solidifies Pendle’s position as foundational infrastructure for crypto’s emerging on-chain yield curve, attracting institutional participants seeking predictable yield and standardized interest-rate products.
Key Points
- Pendle generated $40 million in annualized protocol revenue in 2025, with a forward P/E ratio below 20, suggesting potential undervaluation relative to growth.
- The protocol settled $58 billion in fixed yield over various on-chain yield assets, highlighting accelerating adoption by funds, treasuries, and professional traders.
- Boros, Pendle's new funding-rate derivatives platform, has already achieved $80 million in open interest and $5.5 billion in notional volume in early operations.
Record-Breaking Growth Across Core Metrics
The 2025 performance results from Pendle reveal a protocol operating at unprecedented scale. The average Total Value Locked (TVL) reached $5.8 billion, representing a substantial 79% year-over-year increase, while the peak TVL soared to an impressive $13.4 billion. Trading volume for the year hit $47.8 billion, a 36.5% increase from the previous year, and the protocol attracted 155,553 new participants, marking 48% user growth. The most staggering figure, however, is the $58 billion in fixed yield settled, which rose by 161% year-over-year.
These metrics underscore a clear trend: accelerating institutional adoption of on-chain yield instruments. As noted in the release, funds, corporate treasuries, hedging desks, and professional traders are increasingly turning to Pendle for predictable yield exposure and standardized interest-rate products. This demand is driving the protocol’s financial performance, with Pendle generating approximately $40 million in annualized protocol revenue in 2025, placing it among the top revenue-producing entities in the DeFi sector.
Analysts have pointed to a potential valuation gap, noting that based on current revenue and market valuation, Pendle’s forward price-to-earnings (P/E) ratio sits below 20. This level is considered low relative to the protocol’s high growth rate, ongoing product expansion, and significant market traction, suggesting its fundamentals may be underappreciated as it enters 2026.
Strategic Expansion with Boros: Targeting Funding-Rate Volatility
A cornerstone of Pendle’s 2025 strategy was the launch of Boros, the first on-chain platform for trading tokenized perpetual funding-rate exposure. Funding rates are a critical mechanism in perpetual futures markets, but until now, trading this exposure in a transparent, on-chain format was unavailable in decentralized finance (DeFi). Boros is designed to bring these institutional-grade rate markets on-chain, targeting one of the largest sources of structural volatility in the crypto ecosystem.
Early traction for the Singapore-based platform has been strong. Boros has already recorded $80 million in open interest and $5.5 billion in notional volume. In its initial operations, it is generating approximately $730,000 in annualized revenue. This launch marks a significant evolution for Pendle, which now supports interest-rate products across two major domains: traditional fixed-yield markets and the new frontier of funding-rate derivatives.
With Boros, Pendle is not merely adding another product; it is expanding its role as DeFi’s comprehensive interest-rate layer. The protocol now offers tools for managing yield across both spot and derivatives markets, providing a more complete suite for professional traders and institutions looking to hedge or speculate on future interest rates in the crypto space.
Solidifying Position as DeFi's Interest-Rate Infrastructure
Beyond the headline numbers, Pendle spent 2025 deepening its ecosystem integration and cross-chain reach. The over $58 billion in settled fixed yield spans various on-chain yield assets, demonstrating the protocol’s versatility. Integration activity expanded across Layer 2 ecosystems, trading venues, and structured-product platforms, broadening its utility and accessibility.
A key technical development has been the implementation of cross-chain Principal Tokens (PTs). This innovation unlocks expansion into ecosystems where Pendle and the underlying yield-bearing assets are not natively supported, including non-EVM networks like Solana, which is already on the project’s roadmap. This cross-chain capability is crucial for Pendle’s ambition to become a universal layer for on-chain yield.
Analysts from multiple research groups have highlighted that Pendle is evolving into foundational infrastructure for crypto’s emerging on-chain yield curve. By combining record growth in its core fixed-yield business with the innovative launch of Boros for funding-rate derivatives, Pendle is systematically building the financial primitives required for a mature, institutional-grade DeFi market. The protocol’s trajectory suggests it is becoming an indispensable piece of the global financial system’s gradual migration on-chain.
📎 Related coverage from: cryptopotato.com