Just In: Binance Labs Partners with Pendle Finance to Boost DeFi Yield Potential

Binance Labs, the influential venture division of Binance, has announced a strategic investment in Pendle Finance. This move underscores Binance’s growing interest in the DeFi sector, with Pendle Finance pioneering yield tokenization. Consequently, the aim is clear on harnessing the power of decentralized finance for both institutional and retail users.

Yield Tokenization: The Next Big Thing?

Significantly, Pendle Finance operates on a model that tokenizes yield. It differentiates yield-bearing tokens like Lido’s stETH into two separate components: the principal and the yield-bearing segment. 

We're excited to announce that we'v invested in @pendle_fi!

Pendle Finance is a yield derivative protocol that enables users to execute advanced yield strategies, bringing the TradFi interest derivative market to DeFi.https://t.co/CDDXCWRCbQ

— Binance Labs Fund (@BinanceLabs) August 23, 2023

Additionally, users can purchase the principal part at a discount, holding onto it until maturity to earn the yield generated. Currently, Pendle offers an impressive annual fixed yield of 2.93% on USDT and 5.37% on stETH.

Moreover, nearly half of Pendle’s deposits lie in liquid staking derivatives, including stETH. With the liquid staking protocols valued at $20.16 billion, it’s evident that this sector is burgeoning. Binance Labs sees this as a key element in the evolution of decentralized finance.

Source: DeFiLlama

Binance Labs: Championing DeFi Innovation

Binance Labs‘ involvement with Pendle is a collaborative event. Their recent $10 million investment in Helio Protocol underlines the consistent and strategic moves towards embracing the DeFi ecosystem. Hence, it’s no surprise that Binance Labs’ portfolio, with a present value of $9 billion, encompasses a diverse range of 200 projects spread over 25 countries. Yi He, a pivotal figure at Binance Labs, emphasized their focus on innovation. He stated,

“Binance Labs is always scouting for projects, leading the charge in DeFi sectors to broaden accessibility.” Moreover, TN, the dynamic CEO of Pendle Finance, expressed enthusiasm about the partnership, noting the vast potential growth this collaboration promises.

Binance Labs’ investment in Pendle Finance signifies vision, innovation, and strategic alignment. Both entities stand poised at the cusp of redefining the decentralized finance landscape, making it more accessible, transparent, and yield-optimized for users worldwide.