Inevitable Yield is one of the oldest instruments in finance. It’s the force that money orbits around, deciding the path of every dollar in the system. Yield is the spice that controls the financial universe, and Pendle has a plan to become the black hole for all yield. Collectively, Pendle V2 and Boros are structured to pull in every type of yield in the world. V2 takes in any yield living inside a token onchain, while Boros covers the rest, including tens of billions of funding that changes hands across perp markets every year. Five years of building took Pendle from a handful of mishmashed pools to the fixed income and rates layer of DeFi - with the liquidity, the ecosystem integrations, and the cross-chain connectivity that lets a yield be priced and fixed seamlessly across crypto. Boros added another piece that no one else had, a venue for funding rates to shine. With the groundwork laid, there are 3 big themes within crypto that we have conviction are the high growth, game changers this cycle and we have positioned Pendle to absorb the incoming waves. Stablecoins Tokenized RWAs Perps Wave 1: Stablecoins Stables are always fashionable and most incumbents and industry sources expect stablecoins to grow significantly, with the bankers and payment networks preparing to make their entrance. Supply sits at ~$300 billion as of mid-September 2026, up 14% year on year. Citi’s base case for stablecoins is $1.9 trillion by 2030, and Standard Chartered has $2 trillion by 2028 - ~6x from where we currently stand. Regulation is already in motion and Global Dollar Network, the consortium behind Paxos's USDG that counts Kraken, Robinhood, Galaxy, and Mastercard among its members, has already set up Pendle markets for USDG with great success. Earlier this year, Pendle became the largest holder of USDG on Ethereum (27.9% of supply), growing from $0 to $121M in under 2 months since launch. On X Layer, the Pendle USDG market makes up 40% of the chain’s TVL by itself. Stables are Pendle’s bread and butter - Just plugging into the Pendle ecosystem gives stablecoin issuers tremendous utility and distribution with stable pools on Pendle generating $6 billion in notional volume this year. This is not a new occurrence. At its peak, half of Ethena’s TVL amounting to ~$7B sat on Pendle. On Monad this year, the AUSD markets alone reached ~$230 million in TVL, with Pendle accounting for >78% of the stablecoin’s total supply. The pattern is familiar enough that Dune has coined it “The Pendle Effect”, “the demand surge a token experiences when Pendle Finance launches PT/YT markets for it”. As the stablecoin wave grows, Pendle will be there. Wave 2: Tokenized RWAs Tokenized RWAs excluding stablecoins have gone from around $10 billion at the start of 2025 to nearly $39 billion today (~4x under 2 years), with US Treasuries, private credit, commodities and tokenized stocks each now past the $1 billion mark. The 2030 estimates range from $2 trillion at the conservative end to over $16 trillion, so even the cautious view implies a 50x in under 4 years. RWA has been the defining anchor for Pendle in 2026 - Of the markets launched this year, 66 are RWA-linked, spanning Treasury bills, private credit, STRC dividends, tokenized equities and compute infrastructure. We’ve helped bring a sizable share of assets and traction to the market. $210M of RWA backed PTs now sit as collateral on Morpho. STRC markets on Pendle reached over $500M in TVL in May with more than $977M in cumulative volume, the single most dominant source of activity for the ecosystem. USDai, which tokenizes compute infrastructure, peaked at $568M TVL earlier this year on roughly $2.5B of total volume. A Partners Group’s fund has also just launched, bringing the strategies of the prominent $185B AUM Private Equity firm to the Pendle ecosystem and marking the start of another massive funnel of Pendled assets. Despite some success our view is that it’s still very early. The most recent Robinhood innovations show us that seamless tokenization is only just starting to show PMF and that the line between on-chain and off-chain is blurring quickly. We anticipate that the full force of this wave will have industry changing implications. As the RWA wave grows, Pendle will be there. P.S. In the coming weeks we will also be sharing a new technical innovation that will allow for assets with no yields to be PT/YTed in a degen friendly manner. Stay tuned! Wave 3: Perps Ethena reached the conclusion that equity and commodity linked perps is one of the few 100x left in the space. We agree. Equity perps now carry over ~$6 billion of OI, up more than 10x in 6 months. Stock volume on Hyperliquid has grown from $4 billion to $212 billion this year, and when SpaceX went public, its price discovery happened on perp venues before the shares were live. ICE, the owner of the NYSE, took a stake in OKX and put its Brent and WTI benchmarks on OKX perps. Kalshi has launched the first CFTC-regulated perps in the US. Perps are quickly becoming the de facto 24/7 market for everything, and the funding rate is a byproduct that is too significant to ignore. As Ethena mentioned, these perps have run at significant funding levels. In May, Hyperliquid’s open interest weighted funding averaged 14% annualised and Binance’s averaged 17.5%. Oil funding is 14x more volatile than BTC funding, with funding flipping between negative and positive on 40% of the days. From Apr 6 to Apr 14, oil fell from $113 to $91 and despite being right, shorts still surrendered significant gains to funding: On such volatility, Boros brings the ability to lock in funding costs, run fixed return carry trades or simply speculate on funding numbers to go up/down. On Binance this year, holding a BTC perp cost about $0.03 in funding for every $1 of notional. Holding SK Hynix cost $0.35. The daily funding rate on BTC moved with a standard deviation of 5%. On gold and silver it was 60 to 65%, and on SK Hynix 163%. RWA funding is a completely different beast from anything we have seen, and no desk or trader can carry a leveraged position on a cost with that much volatility. Every new RWA listing arrives with its own funding costs, and none of it lines up neatly across venues. Boros, with the combination of prime brokers like CrossEx, has been enabling users to execute this arbitrage to the tune of 30-40% APR with ease. Arbitrage, a Boros product, streamlines the cross-exchange funding arbitrage into a 2 click execution. Live opportunities have been consistently attractive at around 20-40% APR. Perps are already global financial infrastructure, and they are only poised to scale further. As funding rates become commonplace, there remains only one venue to manage, trade and lock in fixed returns. As the Perp wave grows, Pendle will be there. The Pendle Pull Yes the waves are great, but why Pendle? Simply put, entering the Pendle maw gets you top distribution, an ecosystem of utility and that sweet, sweet liquidity. The “The Pendle Effect” mentioned earlier highlights the impact of our outreach and Pendle PTs are readily onboarded as accepted collateral/lego bricks across both DeFi and CeFi platforms. Amongst this we’ve also built crosschain PTs, where PTs can be utilized as collateral on any supported chain. Earlier this year we saw 170M of PT-USDe bridged from ETH to BNB Chain to be used as collateral. Liquidity Begets Liquidity We’ve also done the hard work on the liquidity front. The foundations are in place to accommodate the waves at institutional scale. They’ve been tweaked and upgraded over the years and are ready to perform. At time of writing, you can now perform a $50M swap for PT-sUSDS to lock in ~4.6% Effective Fixed APY, with only -0.05% slippage - a swap efficiency that rivals even the deepest markets on the biggest centralized exchanges. 📷 Preview of 50M USDS swap for Fixed Yield on Sky, powered by Pendle PT-sUSDS The same pattern of deep swap capacity paired with fixed rate premiums holds across Pendle’s stablecoin and RWA markets. Our AMM liquidity is complemented by a limit order system, allowing all orders to fill partly against both systems for the best price. Underneath this sits an algorithmic incentive module (AIM) that automatically strategizes PENDLE reward allocation across markets. Our work on AIM has been a quiet game changer - tradable liquidity has increased from ~$350mm to ~600mm (+71% YTD) while the cost of acquiring liquidity has shown a 22x increase in efficiency. Today, Pendle is more efficient and capable than ever of absorbing large swaps while operating on much lower emissions - down 92% since the start of the year. One example on highly efficient markets is AUSD where floating TVL is $130m while AMM liquidity provided sits at just $2.5m, made possible with our limit orders and AIM. At the time of writing, a $20m trade against this $2.5m pool would incur just 0.22% yield impact, something previously unthinkable without literally billions in TVL. Does this sound attractive to an RWA or stablecoin issuer? We’d like to think we make a convincing case. 📷 A mass that accumulates past a certain point starts organising the space around it, and everything within reach begins to move toward it. The design is such that choice is removed from the equation, with the attraction being inevitable. A stablecoin that wants to scale needs an effective distribution channel for its users to earn. A tokenized fund that arrives onchain as a floating rate needs somewhere that rate can be stripped. A perp on any asset, be it onchain or off, carries a funding rate, and a funding rate can only be hedged where funding is traded. The foundation is set, the infrastructure in place. Each of these are on a trajectory to become supermassive, and in each case their yield has only one deep venue to fall into. Pendle. 📷