Pendle

Aave receipts, staking tokens and points-bearing assets do not accrue or redeem in the same way. SY gives them a common contract interface, but each adapter still decides accepted deposits, outputs and exchange-rate logic. The wrapper is a translation layer, not insurance against the translated protocol.

Most newer SY deployments are upgradeable proxies. That choice lets Pendle add deposit routes or repair integrations without moving every market, but it also places adapter behavior behind proxy administration and pause controls. Readers must inspect the particular SY rather than treating the two letters as one risk.

Market names add a second translation: the accounting asset in parentheses defines the unit PT redeems. A PT-ezETH market marked ETH promises one ETH worth of ezETH, not one ezETH. That small label determines the actual principal claim.

The tokenization contract converts indexed SY exposure into PT and YT for one expiry. PT gives up variable yield and points in exchange for principal at maturity. YT owns those pre-expiry flows and can claim accrued amounts, but its remaining time value trends to zero.

Before maturity, recombining requires matching PT and YT; after maturity, PT stands alone. YT does not become a share of the principal. A buyer therefore pays today for an uncertain stream with a hard stop, while a PT buyer accepts underlying and contract risk for a defined accounting amount later.

The split makes positions tradable, not certain. A falling SY exchange rate can impair redemption, external rewards can change, and some points are tracked by partner systems off-chain. Pendle can specify the claim without controlling every source of what the claim is worth.

Pendle V2 pools PT against SY and constructs YT trades through flash operations through the same liquidity. Instead of concentrating around a spot-price range, the curve concentrates around an implied-APY range and narrows as the final date approaches.

The oracle records cumulative logarithmic implied rates and turns them into a geometric-mean TWAP. That makes an on-chain rate useful for integrations, but it remains a history of market quotations. If realized yield diverges or liquidity is manipulated, the economic outcome can differ from the displayed implied APY.

Pendle charges 5% on YT yield and negotiated points. Twenty percent of swap fees goes to the pool's LPs; remaining covered swap fees and all YT fees are divided 80% to buybacks, 10% to treasury and 10% to operations under the current document.

A matured PT stays redeemable, but yield generated by its unredeemed SY collateral is redirected to the treasury. Maturity ends the holder's yield clock even though the underlying adapter may keep producing value. Timely redemption is therefore part of the economic design.

The official interface says only the team currently deploys displayed pools, while core factories and routers can be used by others. Curation affects discovery; it does not make every externally created market an endorsed Pendle listing.

A deployed market's core parameters, including its yield range, are immutable. If it moves out of range, a new market and LP migration are required. Router V4, by contrast, is an upgradeable diamond, and most newer SYs use proxies.

Ethereum deployment records name governance, multisig, proxy-admin and timelock addresses, but an address list alone does not prove current signers or operational practice. The safe conclusion is narrower: critical interfaces have different mutability, and users need contract-specific authority checks.

Pendle launched sPENDLE on January 20, 2026 and paused new vePENDLE locks on January 29. Existing ve positions received a non-transferable virtual balance, boosted up to 4x by remaining lock time and decaying toward expiry; sPENDLE replaced multi-year commitment with a 14-day exit.

Reward eligibility now depends on active participation when a Pendle Protocol Proposal exists. Up to 80% of V2 fee revenue goes to buybacks and up to 100% of purchased PENDLE may reach active sPENDLE. Those words leave policy discretion; they are not a fixed legal dividend.

The older tokenomics page still describes weekly emissions decaying until April 2026 and then 2% annual inflation. Current pool allocation instead uses an off-chain Algorithmic Incentive Mechanism whose owner-controlled gauge contract can whitelist markets, set reward rates, withdraw undistributed PENDLE and authorize upgrades. Gross issuance and pool allocation must therefore be checked separately on-chain.