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).

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Asset management

Pendle

# Pendle Expenses Methodology

## 1. Overview

Pendle expenses are represented by the total USD value of Pendle asset incentives distributed by the protocol to various Pendle markets across multiple blockchain networks. The protocol's asset distribution expenses are captured by this metric as a key component of operational costs. Pendle asset distributions from `GaugeController` contracts are aggregated across 12 different chains and converted to USD values on a daily basis.

## 2. Data sources

The following raw data sources are utilized:

- **Blockchain events**: `ReceiveVotingResults` events from `GaugeController` contracts, covering Ethereum, Arbitrum, Base, BSC, and 8 other chains
- **External data**: End-of-day price feeds for Pendle assets and asset decimal metadata

## 3. Step-by-step calculation

### Component A: Raw asset distribution extraction

- **Purpose**: Pendle asset distribution events are extracted from gauge controller contracts across all supported chains
- **Logic**: `ReceiveVotingResults` events emitted by `GaugeController` contracts are monitored across 12 different blockchain networks. An array field `pendleAmounts` containing the amounts of Pendle assets being distributed to various Pendle markets is included in each event. These arrays are unnested to create individual records for each distribution amount, ensuring every asset distribution is captured as a separate data point.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `token_address`, and `amount`

### Component B: Event standardization and classification

- **Purpose**: Extracted events are standardized with consistent business classifications and metadata
- **Logic**: Each extracted distribution record is enriched with standardized metadata including chain identifier, business line classification as "Exchange AMM", market sector as "derivatives", business segment as "perpetual", and protocol version. The specific Pendle asset contract address for each chain is also attached to ensure proper asset identification.
- **Key fields**: `chain`, `business_line`, `market_sector_id`, `business_segment_id`, `product_id`, `version`, `token_address`, and `amount`

### Component C: Daily aggregation and USD conversion

- **Purpose**: All asset distributions are aggregated by day and raw asset amounts are converted to USD values
- **Logic**: All event timestamps are truncated to daily boundaries using day-level timestamp truncation, creating daily aggregation periods. Raw Pendle asset amounts are then processed through USD conversion using end-of-day price feeds for Pendle assets. Asset decimals are adjusted during the conversion process to ensure accurate amount representation. All distributions within each day are summed to create daily totals.
- **Key fields**: `timestamp`, `timestamp_grain`, `chain_id`, and `token_incentives`

### Component D: Final aggregation and filtering

- **Purpose**: Daily USD-converted asset incentive totals are finalized and filtered
- **Logic**: The daily USD-converted asset incentive totals are processed through a finalization process where schema validation is applied, ID consistency is ensured, and missing data is handled by filling zeros. Pendle asset amounts are converted to USD using end-of-day price feeds, with proper decimal adjustment applied based on asset metadata. All distributions are aggregated at daily boundaries, with consistent daily periods ensured across all chains through timestamp truncation. Chain availability filtering is applied to the metric to ensure only supported chains are included in the final results.
- **Key fields**: `timestamp`, `chain_id`, and `expenses`

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

Total project operating and incentive expenses.

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Expenses

Expenses

Competitive landscape

Chain breakdown