Binance Labs Invests in Yield Tokenization Protocol Pendle Finance

Binance Labs Invests in Pendle Finance

Binance Labs, the venture arm of leading cryptocurrency exchange Binance, has revealed an undisclosed investment in Pendle Finance, a decentralized finance (DeFi) platform specializing in yield tokenization.

The investment aims to fuel Pendle Finance’s expansion across multiple blockchain networks, catering to both retail and institutional users.

Pendle Finance, helmed by Co-founder and CEO TN Lee, is set to leverage Binance Labs’ substantial expertise and resources to amplify its market presence. The project currently operates on three blockchains: Ethereum, Arbitrum and BNB Chain.

Following the announcement, Pendle Finance (PENDLE) is up 12.89% over the past 24 hours.

Pendle Finance’s fixed yield offering, akin to a bond-like asset, divides a yield-bearing token into a principal token (without yields) and the yield-bearing component. This allows users to acquire the principal token at a discounted price, redeeming it at maturity to capture the generated yield.

stETH and FraxETH are two examples of liquid staking derivatives (LSD) that receive about half of Pendle Finance’s deposits. The LSDfi industry is expanding rapidly, and Binance Labs emphasizes that LSD assets will be essential to the future of decentralized finance.

Binance Labs maintains a diverse portfolio valued at $9 billion, comprising 200 projects spanning 25 countries.