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Pendle Finance Raises $3.5 Million To Create A Secondary Market For DeFi Yields

By Luke F. - Crypto Broker - 16-04-2021

The company is developing a tokenization framework to help users better control their DeFi yields.

Pendle Finance, a decentralized finance protocol that allows users to tokenize and sell potential yields, has closed a $3.5 million private investment round to fuel the next stage of its platform's evolution.

CMS, DeFi Alliance, Lemniscap, Hashkey Capital, imToken, and Spartan Group were among the companies that contributed to the private investment round. Industry leaders from projects like Kyber Network and KeeperDAO are advising the team. The co-founder of Pendle, referred to as "TN," said that his platform allows users to trade the "ever-increasing yield" provided by DeFi products in a secondary market. He elaborated:

“Bringing greater visibility and control to yield markets is necessary for the maturation of the space.”

Pendle, which was founded in October 2020, has created a protocol that allows users to distinguish future yield from their base yield-bearing properties. Users can exchange future yield tokens using the platform's automated market creator, or AMM.

Users will sell their yield tokens in order to lock in gains and earn cash up front. They can also buy the tokens in order to gain exposure to fluctuating yields.

Due of its competitive yields and expanded access to peer-to-peer lending opportunities, DeFi has attracted a slew of new investors. Some of the most common DeFi lending protocols provide annual percentage yields in the high double digits. Depositors have earned hundreds of millions of dollars in incentives from these sites.

On CoinMarketCap, there are over 300 DeFi projects reported. Their total market cap is $119 billion, up 26.9%.

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https://cointelegraph.com/news/pendle-finance-raises-3-5m-to-launch-secondary-market-for-defi-yields

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