Pendle Releases 2025 Roadmap, Plans To Expand Beyond DeFi With Citadels And Boros
In Brief
Pendle’s roadmap outlines an ambitious plan for 2025, featuring V2 protocol upgrades, Citadels for cross-chain and TradFi market entry, and the advancement of Boros to transform yield markets.
Permissionless yield-trading protocol, Pendle has unveiled its 2025 roadmap, providing an overview of the platform’s three core pillars.
In 2024, Pendle identified a market demand for fixed yield and demonstrated its ability to scale effectively, moving from millions to billions in market size. The protocol saw an increase in trading volume, with daily averages rising from $1.1 million in 2023 to $96.4 million in 2024, marking an almost 100x growth.
Looking ahead, Pendle plans to implement fundamental upgrades in V2, continuing its permissionless approach. One key update will allow third-party protocols to deploy pools more easily via the user interface, expanding access to Pendle’s technology.
Fee optimization will be a focus, with dynamic fee rebalancing to maintain optimal pool performance as rates fluctuate. Pendle will also expand options for vePENDLE holders, aiming to allow all users to participate in governance, regardless of their token size. Improvements will also be made to enhance the experience for vePENDLE holders across all aspects of the platform.
Pendle V2 has already proven its resilience, and the protocol intends to take a more aggressive approach to product expansion in the coming year. The next step will involve the creation of Citadels as new outposts to engage the next generation of users.
Pendle Expands To New Markets With Citadels
Currently, Pendle is only accessible to the decentralized finance (DeFi) community within Ethereum Virtual Machine (EVM) ecosystems, but the platform sees potential beyond them. Citadels are being developed as a way to expand.
The first Citadel will lead Pendle’s efforts to extend PT offerings beyond EVM chains. By offering one-click access to fixed yield within Solana, TON, and HYPE ecosystems, Pendle aims to capture new opportunities and attract a fresh wave of users.
The second Citadel will focus on creating a KYC-compliant product that packages Pendle’s yields for regulated institutions, creating a distribution pipeline that opens access to premium crypto-native fixed yields for traditional finance (TradFi) entities.
Additionally, Pendle plans to launch a Citadel focused on adhering to Shariah principles. Islamic finance, a sector worth $3.9 trillion with a presence in over 80 countries, presents an opportunity for Pendle to tap into.
Pendle’s Boros To Transform Yield Markets By Bridging Blockchain And TradFi
Pendle sees Boros as one of the applications that effectively address real-world use cases, utilizing blockchain technology to offer functionality that is currently unachievable in the TradFi space.
Boros is designed to support any type of yield—whether it originates from DeFi, centralized finance (CeFi), or even traditional markets like LIBOR or mortgage rates—expanding Pendle’s market scope and reshaping the yield landscape.
Initially, Boros will target one of the largest sources of yield in the cryptocurrency market: funding rates. With $150 billion in open interest daily in perpetual markets, where funding is exchanged every second in an ever-active market, this segment processes $200 billion in daily transactions—surpassing spot market volumes.
The yield from these markets has the potential to greatly exceed what is currently available in Pendle’s V2 spot market.
Boros will also offer Ethena complete control and predictability over its funding yield, allowing the protocol to secure a fixed funding rate, ensuring stability and scalability. Additionally, Boros can address the issue of extreme funding rate costs. By providing traders with enhanced tools to manage and optimize returns, Boros sets a new standard in how funding rates are interacted with in the market.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
