April 19, 2024
Binance Labs Invests in Pendle Finance's Fixed-Yield Protocol
Latest Cryptocurrency News

Binance Labs Invests in Pendle Finance’s Fixed-Yield Protocol

Pendle Finance’s support for Binance Labs is another step toward the investment firm’s entry into the liquid staking market.

Pendle Finance, a DeFi program with a yield tokenization focus, has received an undisclosed investment from Binance Labs, the entrepreneurial arm of Binance.

The Pendle Finance team will use the investment they have obtained to expand their multichain network, with an emphasis on “both retail and institutional users.”

Pendle Finance currently supports Ethereum, Arbitrum, and BNB Chain as supported blockchains.

TN Lee, co-founder and CEO of Pendle Finance, stated that he and his group will expand their reach using Binance Labs’ “unparalleled expertise and resources.”

Pendle’s fixed yield product, which is “traditionally the backbone of institutional hedging,” “will play a pivotal role in the project’s growth,” according to Binance Labs.

Finance Pendle A yield-bearing token like Lido’s stETH is split in two by fixed yield, which is effectively a bond-type asset: a principal token (without yields) and the yield-bearing component. Users can purchase the principal token portion at a reduced price and redeem it at a specified maturity date to earn the yield.

Pendle Finance now offers a 2.93% yearly fixed income on Tether’s USDT and a 5.37% annual fixed yield on stETH.

Particularly, according to DeFiLlama statistics, about half of Pendle Finance’s deposits are in liquid staking derivatives (LSD), including stETH and Frax’s FraxETH.

The combined value of liquid staking protocols is $20.16 billion, which is much more than the combined value of loan protocols ($12.77 billion) and decentralized exchanges ($12.07 billion).

LSDfi pertains to the programs that use stETH and other LSD tokens in DeFi programs to increase yields.

Following a $10 million investment in Helio Protocol, Pendle is Binance Labs’ second LSDfi venture.

With a portfolio worth $9 billion at the moment, Binance Labs said that it had produced returns from investments that were nearly ten times higher.

200 projects from more than 25 countries are included in its portfolio.

Image: Medium

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