Pendle Expands to Solana, Hyperliquid, Ton; Targets Perps Funding Rates

Pendle, a leading decentralized finance (DeFi) protocol, has announced its plans to expand its reach by targeting Solana, Hyperliquid, and Ton, three prominent blockchain networks. This strategic move aims to capitalize on the growing yield-trading markets on these platforms and further solidify Pendle's position as a key player in the DeFi landscape.

Pendle's success in the DeFi space is undeniable. In 2024, the protocol grew its total value locked (TVL) levels to $4.4 billion and daily average trading volumes to $96 million, marking a 20x and 100x increase, respectively. Pendle's ability to emulate traditional structured products, such as zero-coupon bonds and interest rate swaps, has been a significant factor in its growth. The protocol has effectively become a factotoken launchpad, akin to an initial coin offering (ICO), but with improved features and benefits.

Looking ahead to 2025, Pendle has outlined several plans to further enhance its offerings. The protocol will introduce dynamic fees for yield trading and improvements to the vePENDLE token bribe system. However, the most notable upgrade is Pendle's plans to target perps funding rates, a highly lucrative yield source in the crypto market. As part of the "Boros" initiative, Pendle will allow traders to swap to yield trade perpetual funding rates, enabling protocols like Ethena to lock in predictable funding yields and offer fixed APYs for USD holders. This feature will also benefit long traders in hyper-volatile perps markets, allowing them to hedge against their positions by locking into a predictable, fixed funding rate.

In addition to targeting perps funding rates, Pendle is planning an expansion to non-EVM chains, including Solana, Hyperliquid, and Ton. Solana, in particular, has a burgeoning yield-trading market, although it is still relatively small compared to Pendle. By expanding to these networks, Pendle aims to tap into the growing yield-trading markets and attract a broader range of users to its platform.

Pendle's ambitions do not stop at DeFi. The protocol is also planning to enter the traditional finance (TradFi) sector by targeting regulated entities and Islamic funds. The pitch is straightforward: why stick with low yields on traditional financial instruments when you can enjoy higher yields in the