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Yield-Bearing Token

Yield-bearing Token is an umbrella term that refers to any token that generates yield. Examples include aUSDC, SLP tokens, and gOHM.

SY = Standardized Yield

SY is a token standard written by the Pendle team that wraps any yield-bearing token and provides a standardized interface for interacting with any yield-bearing token’s yield generating mechanism. SY is a purely technical component, the user does not interact directly with SY.

PT = Principal Token

PT entitles you to the principal of the underlying yield-bearing token, redeemable after maturity. If you own 100 PT-aUSDC with 1 year maturity, you will be able to redeem 100 aUSDC after 1 year.

YT = Yield Token

YT entitles you to accrue the yield of the underlying yield-bearing token in real-time, and the yield accrued can be manually claimed at any time. If you own 100 YT-aUSDC and aUSDC has an average yield of 5% through the year, you will have accrued 5 aUSDC by the end of the year.


Maturity is the date at which PT becomes fully redeemable for the underlying asset and YT stops accruing yield. One asset can have multiple maturity dates, and there is an independent market for each maturity date, and as such the implied yield of an asset can differ across different maturities.

Underlying APY

Underlying APY is the prevailing yield rate of the underlying asset. This APY is determined by the protocol that created the asset. Underlying Value is the current market value of the asset in USD.

Implied APY

Implied APY is the market consensus of the future APY of an asset. This value is calculated based on the ratio of the price of YT to PT and the formula is shown below. This is the tool, when used in conjunction with the Underlying APY, that most traders use to determine their trading strategies.

Implied Yield=[(1+YT PricePT PriceYT Price)365Days to expiry]1\text{Implied Yield} = \left[\left(1 + \cfrac{\text{YT Price}}{\text{PT Price} - \text{YT Price}}\right)^\cfrac{365}{\text{Days to expiry}}\right] - 1

Long Yield APY

Long Yield APY is the extrapolated APY of buying YT at the current price, assuming underlying APY remains constant. This value can be negative, meaning that the current underlying APY will be less than the cost of buying YT.

Fixed APY

Fixed APY is the guaranteed yield you will receive by holding PT. This value is numerically equivalent to the Implied APY.

What does the maturity date mean?

Each PT and YT has an maturity date. For PT, you can redeem the full underlying yield-bearing token after this date. For YT, the yield of the yield-bearing token is only accrued up until the maturity date, after which YT has no value.

What is the difference between Simple UI and Pro UI?

Simple UI and Pro UI run on the same set of contracts and use the same tokens.

Simple UI is streamlined to perform the 2 main functions that are predicted to have the highest traffic in order to create a better UX for the majority of users.

Pro UI gives users the full suite of functions on Pendle, allowing users to yield trade by buying and selling PT and YT.

You can switch between the two modes by toggling the UI at the top right corner of the app.

Simple Toggle Pro Toggle

What is an epoch?

For Pendle, an epoch is exactly one week. Each epoch starts and ends at Thursday, 00:00 UTC.

Snapshots of vePENDLE voting are taken every epoch, and non-yield rewards (e.g. $CRV, $CVX tokens) are also distributed every epoch.

Liquidity Provision

What do I receive in return for providing liquidity?

  • Swap fees generated by the pool
  • PENDLE incentives
  • Protocol incentives emitted by the underlying asset (e.g. $COMP, $AAVE)

Do I have to stake my LP to earn rewards?

No, you do not have to stake LP tokens. All LP token holders will receive their fair share of the rewards.


What is vePENDLE?

vePENDLE is Pendle’s governance system.

How does vePENDLE work?

Lock PENDLE for vePENDLE. The greater the lock duration, the greater your vePENDLE value. Your vePENDLE value decays over time, but your lock duration can be extended to negate the decay.

Use vePENDLE to channel PENDLE incentives. Vote for your desired pool to incentivise liquidity. The more vePENDLE you have, the more voting power you hold. Voting for a pool entitles the you to 80% of the swap fees collected by the pool. This APY is shown in the "Voter APY" prior to casting your vote.

vePENDLE holders also receive a portion of protocol revenue, earned from swap fees and YT fees.

When does my PENDLE unlock?

You can lock PENDLE for vePENDLE for up to 2 years. One wallet is associated with a single unlock date. If you extend your lock duration or lock more PENDLE, the unlock date will be changed for your entire vePENDLE balance.

Is there a difference between Ethereum and other chains?

vePENDLE resides solely on the Ethereum blockchain, meaning you can only lock PENDLE and vote from Ethereum.

However, pools on other chains (once deployed) can still be voted for, so incentives can be channelled to other blockchains via voting.


Is Pendle audited?

The Pendle codebase has been fully audited by reputable auditors and all flaws have been addressed. Read the audit reports here. Nonetheless, users are advised to exercise caution and deploy funds prudently.

What risks are there associated with using the protocol?

Since Pendle interacts with third-party protocols and contracts, there is inherent risk associated with the smart contracts and systems deployed by the third-party protocols. Pendle is not responsible for any funds lost due to exploits in third-party contracts.