Pendle Finance, a yield management platform, has announced its expansion to the Ethereum Layer 2 network Arbitrum, allowing for a more cost-effective way to access its services.
The protocol splits yield-bearing assets into two components: the underlying token and the yield, enabling traders to buy and sell them separately.
By creating a yield market in DeFi, Pendle unlocks the full potential of yield and allows users to execute advanced yield strategies, including
- long assets at a discount
- fixed yield for low-risk, stable growth
- leverage exposure to future yield streams without the need for collateral.
The platform has partnerships with protocols including Aura Finance, Balancer, Lido, and RocketPool to add support for their assets. Pendle will enable a more advanced yield strategy for the $GLP token from GMX.