According to data from Token Terminal cited in reports on December 18, 2025, the decentralized finance (DeFi) protocol Pendle has generated $33 million in cumulative revenue year-to-date. This performance places it as the third-highest revenue-generating protocol in the DeFi money market sector, trailing only the established giants Aave and Spark.
The report highlights that Pendle's revenue is driven by real, usage-led monetization, a notable achievement in a market environment where many protocols rely heavily on token incentives rather than organic demand. This positions Pendle as a model of sustainable growth within DeFi.
Revenue generation stems from multiple core product lines within Pendle's ecosystem. These include its yield tokenization platform, limit orders with Automated Market Maker (AMM) functionality, the vePendle governance system, and Boros. Together, these components function as a yield marketplace, allowing users to separate and trade future yield exposure from principal through its Principal Token (PT) and Yield Token (YT) structures, which resemble traditional financial instruments like zero-coupon bonds.
A key factor in Pendle's success is its ability to attract liquidity when new yield narratives emerge across major assets like ETH, BTC, and stablecoins. The protocol has become a primary destination for users seeking to gain early exposure to or hedge against these yield opportunities.
The protocol's revenue distribution model is designed to align value with long-term stakeholders. 80% of all protocol revenue is distributed to vePENDLE token holders, with 10% allocated to the treasury and the remaining 10% funding operations. This structure emphasizes value accrual to committed participants rather than short-term incentive farmers.
