Binance Labs Invests in Pendle Finance

Following the listing of PENDLE, Binance has announced a strategic investment in Pendle Finance.

Investment Announcement:

• Date: The announcement was made on the evening of 23/08.
• Investment Details: Binance Labs, the investment arm of Binance, has made a strategic investment in Pendle Finance, a protocol designed to optimize yield across various DeFi protocols. The value of the investment was not disclosed.

Pendle Finance Overview:

• Functionality: Pendle Finance is a yield derivative protocol that enables users to execute advanced yield strategies, effectively bridging the TradFi interest derivative market to DeFi. The protocol allows for the tokenization and trading of yield through an Automated Market Maker (AMM) mechanism.
• Growth and Adoption: Since its launch in mid-2021, Pendle Finance has attracted over $115 million in Total Value Locked (TVL). It currently supports 25 investment pools across three blockchains: Ethereum, Arbitrum, and BNB Chain. Notably, many of these pools generate staking yields through Liquid Staking Derivatives (LSD), a sector that has garnered significant interest recently.

Strategic Impact:

• Comments from Binance Labs: A representative from Binance Labs stated that the investment reaffirms their commitment to nurturing potential advancements in the crypto market. It will help Pendle expand its yield optimization strategies across various ecosystems, creating capital optimization opportunities for both individual and institutional investors.

Market Reaction:

• PENDLE Token Performance: The price of PENDLE surged by over 20% following the announcement of Binance Labs' investment.

Recent Investments by Binance Labs:

• Other Projects: Binance Labs has been actively investing in new projects, including zkWASM and zkPass in the zero-knowledge sector, Helio Protocol in the LSD space, and Curve (CRV) following the hack in early August.

Binance Labs' strategic investment in Pendle Finance highlights their ongoing efforts to support innovative DeFi projects, further strengthening the yield optimization landscape within the cryptocurrency ecosystem.