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- Pendle Finance will use the funds to expand into other blockchain markets and give retail and institutional players access to DeFi yield opportunities.
- Binance Labs reinforces its commitment to support next-gen DeFi projects.
Crypto exchange Binance’s venture capital arm and incubation subsidiary Binance Labs announced its investment into leading DeFi protocol Pendle Finance on Wednesday, August 23. The investment highlights Binance Labs’ commitment to supporting promising projects to drive the next DeFi movement.
Pendle Finance stands as a decentralized yield trading protocol, providing users with the opportunity to generate substantial yields on stablecoins and Ethereum-linked assets, including stEth from Lido and rEth from Rocket Pool, among others.
It operates on both the Ethereum mainnet and Arbitrum and offers a mechanism for users to deposit tokens into Principal token vaults, resulting in fixed annual percentage yields (APY). Alternatively, users can acquire Yield tokens, potentially yielding higher returns. The platform also facilitates engagement in liquidity pools and the option to lock up native Pendle tokens (vePendle) for elevated yields and increased governance influence.
The raised funds will be employed to expand the scope of Pendle Finance across different blockchain ecosystems. Thus it will ensure that both individual and institutional users can access diverse DeFi yield prospects.
Pendle Finance places a strong emphasis on inclusiveness and has designed several features to provide enhanced flexibility in yield management through an easy-to-use platform. One key aspect of the project’s growth is its focus on fixed yield, a foundation of institutional hedging. Also, this approach will be crucial in granting users access to more predictable yields, enabling them to optimize their strategies effectively.
Binance Labs supporting DeFi Projects
Binance Labs has further emphasized its dedication to innovative DeFi projects. Simultaneously, Pendle Finance is preparing to incorporate its distinct yield management attributes across a range of blockchain ecosystems. Speaking on the development, Yi He, Co-Founder & Head of Binance Labs said:
“Binace Labs is always looking for projects that are spearheading innovation in DeFi sectors that will enable access to a wider audience. Pendle Finance’s focus on multi-chain expansion and innovative yield strategies align with our vision for the future of DeFi. We look forward to working closely with Pendle Finance and supporting their journey of reshaping the DeFi landscape towards a more inclusive ecosystem”.
As of date, Pendle Finance has 25 different pools across three different blockchains: Ethereum, Arbitrum, and BNB Chain. As said, a significant portion of these tools are Liquid Staking Derivative (LSD) pools. This also provides users with novel ways to engage in staking rewards.
TN, Co-Founder and CEO of Pendle Finance said: “We at Pendle are on a mission to redefine how yield generation is experienced by users. Our collaboration with Binance Labs brings unparalleled expertise and resources that will catalyze our growth, ultimately driving accessibility and usability of yield opportunities across numerous venues. We are excited to embark on this journey together, propelling DeFi into a new era of inclusivity and innovation”.
