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 Total value locked Methodology

## 1. Overview

Total value locked measures the total value of assets locked in Pendle's yield tokenization protocol. The underlying asset value of SY (Standardized Yield) assets held in Pendle Market contracts and YT contracts, plus collateral assets from Boros, are captured. A comprehensive view of capital deployed in Pendle's ecosystem for yield trading and tokenization is provided.

## 2. Data sources

- **Blockchain events**: `CreateNewMarket` events from `MarketFactory` contracts, ERC-20 token transfers, and native asset transfers, covering Ethereum, Arbitrum, Base, BSC, and 8 other chains
- **External data**: End-of-day price feeds, asset metadata, and daily exchange rate and preview redeem state reads

## 3. Step-by-step calculation

### Component A: Pendle Yield Tokenization market contract identification

- **Purpose**: Valid Pendle Market contract addresses are identified across different chains and factory versions.
- **Logic**: Market contract addresses are extracted from `CreateNewMarket` events emitted by `MarketFactory` contracts (versions 2-7) across all supported chains. The Market contract address and corresponding PT address are provided by each event, establishing the relationship between markets and their underlying yield-bearing assets.
- **Key fields**: `market_address`, `pt_address`, chain identifier

### Component B: Pendle Yield Tokenization SY asset flow tracking

- **Purpose**: Movements of SY assets into and out of Pendle contracts are captured to calculate net positions.
- **Logic**: ERC-20 token transfers are monitored where SY assets are sent to or from Market contracts and YT contracts. Transfers to these contracts are classified as inflows (positive amounts) while transfers from these contracts are classified as outflows (negative amounts).
- **Key fields**: `holder_address`, `sy_address`, `flow_type`, `raw_amount`

### Component C: Pendle Yield Tokenization daily balance calculation

- **Purpose**: Daily net flows are aggregated and cumulative running balances are calculated for each Market and SY combination.
- **Logic**: Asset flows are grouped by day to calculate net daily changes (inflows minus outflows) for each Market contract and SY asset pair. A cumulative sum is applied over time to derive running balances, representing the total SY assets held in each Market. Forward-filling is applied to ensure a continuous daily time series.
- **Key fields**: `daily_raw_amount`, `cumulative_raw_balance`

### Component D: Pendle Yield Tokenization SY-to-underlying conversion

- **Purpose**: SY asset balances are converted to equivalent underlying or yield token asset amounts.
- **Logic**: Daily SY balances are converted to equivalent token quantities using either a yield token path or an underlying asset fallback path. If the yield token wrapped by the SY is priced more recently and covers the balance window, the balance is multiplied by a daily redeem factor derived from previewing the redemption of a whole share. If the yield token is unpriced or coverage thresholds are not met, the balance is converted using the daily exchange rate and net asset value (NAV) in proxy units, normalized by decimal precision. A 50% reduction is applied to balances in the specified dual-asset halved market on Arbitrum. To prevent carrying forward stale levels when a market switches its valuation token, closing rows with zero balances are generated on the switch day.
- **Key fields**: `redeem_factor`, `rate`, `nav_in_proxy`, `sy_balance`, `token_address`

### Component E: Boros collateral tracking

- **Purpose**: Daily collateral flows into the Boros Market Hub are tracked.
- **Logic**: ERC-20 token transfers and native asset transfers to the Boros Market Hub contract on Arbitrum are parsed. Daily net flows are calculated by summing inflows and outflows, normalized by decimal precision, and emitted as daily asset-unit deltas.
- **Key fields**: `token_address`, `raw_delta`, `delta_tvl`

### Component F: Delta aggregation and cumulative TVL calculation

- **Purpose**: Daily deltas from both products are combined and cumulative TVL levels are calculated.
- **Logic**: Daily asset-unit deltas from Pendle Yield Tokenization (derived by taking the difference between consecutive daily SY balances) and Boros are aggregated by day, chain, product, and asset. A cumulative sum is applied over time to derive the running TVL level for each asset. Missing days are filled forward to maintain a continuous daily time series.
- **Key fields**: `delta_tvl`, `tvl`

### Component G: USD conversion and final aggregation

- **Purpose**: TVL values are normalized to USD and aggregated across the protocol.
- **Logic**: Asset-unit TVL balances are multiplied by end-of-day asset prices to convert them to USD. The final TVL is aggregated by summing the USD values across all chains and products, with chain availability filters applied.
- **Key fields**: `tvl`, `price_usd`

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

PendlePENDLE

Total value locked

Total value locked

Competitive landscape

Chain breakdown