- Pendle Finance has made a private investment fund worth $3.5M.
- The firm allows users to trade the yield offered by DeFi products.
- DeFi has gained a huge number of new investors.
A Decentralized Finance (DeFi) protocol Pendle Finance will allow users to tokenize and sell future yields. The firm has ended a private investment fund worth $3.5 million to power the next phase of its firm’s evolution.
Moreover, the private investment was made by contributors from different firms. However, these include CMS, DeFi Alliance, Lemniscap, Hashkey Capital, imToken, and Spartan Group, among others. More so, the team is advised by industry leaders from projects like Kyber Network and KeeperDAO.
Pendle’s co-founder TN mentioned that his firm allows users to trade the ever-growing yield offered by DeFi products in a secondary market.
“By giving everybody the ability to easily hedge, trade, and arbitrage yield, we allow our users to actively manage their exposure. Bringing greater visibility and control to yield markets is necessary for the maturation of the space.”
Pendle started in October 2021, it creates a protocol that allows users to segregate future yield from their base yield asset bearings. The firm provides an Automated Market Maker (AMM) which allows users to trade the future yield tokens.
In addition, users can sell their yield to lock in the gains and get the cash. Even more, they can also buy the tokens to gain fluctuating yield exposure.
Furthermore, DeFi has gained a huge number of new investors. Some of the leading DeFi lending protocols provide annual percentage yields that are in the high double digits.
However, these firms have paid out hundreds of millions of dollars in rewards to depositors. CoinMarketCap has listed over 300 DeFi projects. All in all, their combined market price is $119 billion.