Real World Assets (RWAs) are gaining attention as a promising narrative in the near future. Recognizing this trend, the Yield Trading protocol – Pendle Finance, swiftly introduced a product based on RWAs.
TN Lee, co-founder and CEO of Pendle, shared his vision: “Fixed Yield and RWAs are two of the most potential areas to explore in the current DeFi market. I am confident that these two areas will play a crucial role in attracting institutional investors and both off-chain and on-chain capital.”
It’s evident that RWAs have made their way into DeFi and are continuously evolving. Now, Pendle provides a toolkit to help users hedge and manage these profits. From interest rate derivatives and swap contracts to fixed interest rates, these are the products traditional finance loves – all available on Pendle.
Notably, both the RWA and Fixed Yield products of the protocol support Boosted Dai Savings (sDAI) from MakerDAO and the stablecoin fUSDC from Flux Finance.
However, when using Fixed Yield, users can earn annual interest rates of up to 3.74% with sDAI or 3.4% with fUSDC. Additionally, the protocol accepts other staked tokens like sfrxETH from Frax Protocol, stETH from Lido, or swETH from Swell.
With the new product, Pendle’s Total Value Locked (TVL) has surged to $139 million USD. This figure is expected to grow even further due to the project’s well-planned expansion strategy, supported by an investment from Binance Labs.
*Real World Assets (RWAs) are real-world assets that are tokenized as tokens or NFTs. They bridge Traditional Finance (TradFi) and Decentralized Finance (DeFi) to transform real-world assets into digital assets on the blockchain, making them easier to trade.