Pendle V3 to launch on Solana, featuring yield trading on margin, set for September at Solana Breakpoint

Yield-trading protocol Pendle will launch version 3 of their protocol on Solana. Backed by Solana Labs, the launch is slated for September during Solana’s annual Breakpoint event, this year taking place in Singapore. Solana will be their first expansion into a non-EVM environment. Solana Labs has committed to supporting their launch.

What is Pendle?

Pendle is the most widely used protocol for getting fixed rates or longing DeFi yield. At their current protocol iteration, Pendle utilizes an automated market maker — a decentralized exchange that facilitates trading between Principal and Yield tokens using liquidity pools rather than relying on traditional order books where buyers and sellers directly match orders. Achieving a total value locked of $3.5 billion, Pendle ranks 9th across all DeFi protocols according to DeFiLlama.

Launched in 2021, Pendle has undergone several iterations, with Pendle V2 being the current one, introduced in November 2022. V2 is an overhaul from V1 featuring improvements such as vePENDLE, a new AMM allowing concentrated liquidity for a yield range, and a product overhaul including Pendle Earn and Pendle Trade.

What’s new in Pendle V3?

While not much has been revealed, V3 will allow users to post collateral to long and short yields on high leverage. The V3 release will also allow flexibility, allowing users to trade any form of yield such as funding rates from centralized exchanges.

"Expanding Pendle’s fixed rate and yield trading offerings into a leveraged trading model is the next logical step for the Pendle protocol. It extends the existing vision of the protocol to deliver the best yield trading experience for DeFi," said Pendle co-founder TN Lee.

Launching at Solana Breakpoint

Later this year, we will see the return of Solana's annual Breakpoint event, taking place in Singapore.

The conference will take place between Sept. 19 to Sept. 21 and will feature Solana Labs CEO Anatoly Yakovenko, key project leaders from across the Solana ecosystem including Pendle, and speakers from Stripe and Visa.

The last few Breakpoints have typically delivered large announcements. For instance, at Breakpoint 2023, Solana Labs announced the beta launch of GameShift, a simple and fast way to enable web3 gaming experiences on Solana.

“Solana faces hard challenges ahead, however, our partnership with Pendle will push DeFi on Solana to new heights,” Yakovenko underscored.