Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

PENDLE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

github

twitter

discord

etherscan

website

Asset management

Pendle

# Pendle Buybacks Methodology

## 1. Overview

Buybacks are measured as the total value of Pendle assets repurchased from the open market using protocol revenue. These buybacks are funded by a share of primary fees generated by Pendle and are executed to support the asset's value for sPENDLE stakers. The repurchased assets are acquired via the Pendle router by a dedicated buyback executor before being staked and distributed. Insights into the value returned to protocol participants and the reduction of circulating supply pressure are provided by this metric.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events representing asset transfers from the Pendle router to the buyback executor address, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Buyback transfer extraction

- **Purpose**: The identification and extraction of specific asset transfers representing open-market buybacks.
- **Logic**: ERC-20 asset transfers are filtered to isolate transactions where the sender is the Pendle router address, the recipient is the designated buyback executor address, and the transferred asset is the Pendle governance asset. Transfers flagged as removed due to chain reorganizations are excluded. The raw transfer value is extracted for each matching transaction.
- **Key fields**: `value` (representing the raw transfer amount), `to_address` (buyback executor), `from_address` (Pendle router), `token_address` (Pendle asset address)

### Component B: Decimal normalization and USD conversion

- **Purpose**: The adjustment of raw transfer values for asset decimals and their conversion to USD.
- **Logic**: The raw buyback amounts are normalized by the decimal precision of the Pendle asset using asset metadata. The normalized amounts are then multiplied by the end-of-day price of the Pendle asset to determine the USD value of each buyback.
- **Key fields**: `decimals` (from asset metadata), `price_usd` (from end-of-day price feeds)

### Component C: Daily aggregation and zero-filling

- **Purpose**: The aggregation of buyback values to a daily granularity and the maintenance of continuous time-series data.
- **Logic**: The USD-denominated buyback values are aggregated by day, chain, and product. A zero-filling strategy is applied to ensure that days with no buyback activity are populated with a value of zero, maintaining a continuous daily time series.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Daily USD value of tokens repurchased from the open market.

PendlePENDLE

Buybacks

Buybacks

Competitive landscape

Chain breakdown