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 Earnings Methodology

## 1. Overview

Earnings measures the net value retained by Pendle after all token incentive expenses are subtracted from the generated protocol revenue. This metric is utilized to assess the on-chain profitability of the protocol across its core products, which are comprised of Pendle AMM, Pendle Limit Order, Pendle Yield Tokenization, vePendle, and Boros. Protocol revenue is accumulated from swap fees, interest fees, reward fees, and settlement fees, while expenses are represented by Pendle token distributions. Net earnings are calculated by subtracting these expenses from the total revenue to evaluate the financial sustainability of the protocol.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Market` contracts, `OrderFilledV2` events from `LimitRouter` contracts, `CollectInterestFee` and `CollectRewardFee` events from `YT` contracts, ERC-20 token transfers, `ReceiveVotingResults` events from `GaugeController` contracts, `MarketOrdersFilled`, `PaymentFromSettlement`, `Liquidate`, and `OtcSwap` events from `BorosMarket` contracts, and `SwapWithAmm` and `SingleOrderExecuted` events from `BorosRouter` contracts, covering Ethereum, Arbitrum, Base, BNB Chain, and 8 other chains
- **External data**: End-of-day price feeds for Pendle and other underlying assets

## 3. Step-by-step calculation

### Component A: Revenue from Pendle AMM and Pendle Limit Order

- **Purpose**: Capture swap fees from Pendle AMM and limit order fees from Pendle Limit Order
- **Logic**: `Swap` events from `Market` contracts and `OrderFilledV2` events from `LimitRouter` contracts are parsed. For Pendle AMM, 80% of the fee amount is allocated to protocol revenue. For Pendle Limit Order, 100% of the fee amount is allocated. Fee amounts are adjusted using daily SY token conversion rates and multiplied by the ratio of base token deposits to SY tokens to determine the final fee volume.

### Component B: Revenue from Pendle Yield Tokenization

- **Purpose**: Capture interest and reward fees from yield tokenization
- **Logic**: `CollectInterestFee` and `CollectRewardFee` events from `YT` contracts are parsed. The interest fee amounts are adjusted using daily SY token conversion rates. Reward fees are extracted directly from the reward token fee field. Both fee types are normalized by decimal precision and converted to USD.

### Component C: Revenue from vePendle and Boros

- **Purpose**: Capture treasury transfers for vePendle and transaction fees from Boros
- **Logic**: ERC-20 token transfers to the treasury and distributor addresses are tracked, excluding USDT transfers to prevent double-counting. For Boros, fees are aggregated from `MarketOrdersFilled`, `PaymentFromSettlement`, `Liquidate`, and `OtcSwap` events from `BorosMarket` contracts, as well as `SwapWithAmm` and `SingleOrderExecuted` events from `BorosRouter` contracts.

### Component D: Token incentive expenses

- **Purpose**: Capture Pendle token distributions as protocol expenses
- **Logic**: `ReceiveVotingResults` events from `GaugeController` contracts are parsed to extract the distributed Pendle amounts. These amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. For chains like Plasma, HyperEVM, and Monad, the Pendle price lookup is mapped to Ethereum.

### Component E: Earnings calculation

- **Purpose**: Calculate the net earnings of the protocol
- **Logic**: Total protocol revenue is calculated by summing the USD-denominated revenues from Pendle AMM, Pendle Limit Order, Pendle Yield Tokenization, vePendle, and Boros. Total expenses are calculated from the USD-denominated Pendle token incentives. Earnings are computed by subtracting total expenses from total protocol revenue.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

PendlePENDLE

Earnings

Earnings

Competitive landscape