Glossary
Pendle
A DeFi protocol that tokenizes future yield: deposit a yield-bearing asset, get a Principal Token and a Yield Token tradable separately on a custom AMM.
Pendle splits a yield-bearing asset (stETH, eETH, sDAI, GLP, …) into two tokens: the Principal Token (PT), which redeems for the underlying at maturity, and the Yield Token (YT), which captures all yield until maturity.
The split lets users fix a yield (sell the YT, hold the PT), lever into yield (buy YTs), or hedge yield. Pendle has become a major venue for trading liquid restaking and LST yield, and a key piece of any structured yield strategy in modern DeFi.