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World’s largest crypto yield trading platform Pendle has announced a major upgrade to its native token, sPENDLE, as it continues advancing its ecosystem.
According to the announcement, the update seeks to unlock deeper liquidity, diversify revenue streams, and strengthen Pendle’s position within the on-chain yield and rates segment.
While the move has been supported by recent performance metrics from Pendle and Boros, the upgrade highlights the platform’s long-term goals in DeFi and broadens related markets.
Following its growing expansion, Pendle achieved major milestones across key network and metrics in 2025. This illustrates both robust usage and sustained market capture in yield trading.
 
The average total value locked (TVL) surges by 76% Year over Year to an impressive $5.7 billion, with a peak TVL of ~$13.4B, indicating strong liquidity engagement across yield markets.
Moreover, total fees accrued have surged 134% YoY to $44.6M, while holders’ revenue reached $34.9M. It further revealed that the monthly notional trading volume of $54B, with frequent daily nine-figure volumes, is a testament to Pendle’s fixed-yield demand.
Furthermore, the project ranks among the top DeFi protocols by TVL, at 13th place, placing Pendle alongside major DeFi protocols such as Uniswap, Aave, and Hyperliquid.
Nonetheless, the data reflect Pendle’s position as a notable venue for trading tokenized yield and funding rates, with reported realized fees and liquidity depth exceeding those of several comparable fixed-income platforms.
sPENDLE Sees Major Enhancement
Following the upgrade, the Pendle token will begin to offer a comprehensive solution to ensure simplicity and fair distribution across the Pendle ecosystem.
When the upgrade takes effect, protocol revenue will be used to buy back PENDLE tokens and distributed to active sPENDLE holders. Also, the liquidity model will become improved as it will enable sPENDLE a simple 14-day withdrawal period.
sPENDLE also transforms into a composable, fungible token that can be integrated with any dApp, eliminating the trade-off between participation and liquidity across time horizons.
While the previous manual voting system will be upgraded to an algorithmic emission model, it aims to cut PENDLE emissions by 20-30% while delivering significantly better allocation efficiency.
Furthermore, vePENDLE locks will be paused on January 29th, and any existing vePENDLE holders by then will receive a special multiplier to their virtual sPENDLE balance based on their remaining lock duration (up to 4x).
Rewards will be distributed based on this virtual sPENDLE balance, allowing PENDLE holders to gain outsized rewards during this transition period with vePENDLE.
Speaking on the development, TN Lee, Co-Founder and CEO of Pendle, said;
“This upgrade is a structural improvement as we scale both Pendle and Boros” said “Our goal has always been to bring the efficiency and scale of traditional fixed income markets into DeFi. With this upgrade, Pendle becomes a more robust, sustainable, and institution-ready yield infrastructure.”
An additional catalyst for Pendle’s upgraded token architecture is Boros, a first-of-its-kind on-chain venue that tokenizes perpetual funding rates, transforming an untradable yield stream into a tradable instrument.
Over the past four months since its launch, Boros achieved $6.9B in open interest, $91M in deposits, and $6.8M in deposits by year-end 2025. It has also generated $301K in fees while operating in a nascent market, establishing early product-market fit for on-chain rate derivatives.
By addressing one of the largest untapped yield sources in DeFi, which is funding rates exposure, Boros further strengthens Pendle’s growth vector, helping diversify revenue beyond TVL and traditional yield fees.
Per the announcement, Pendle’s token upgrade is intended to support the protocol’s infrastructure for scaling the yield layer of DeFi across both centralized and tradfi markets.