Pendles Total Asset Value Plummeted by 3 Billion Magnesium What Happened

Pendles Total Asset Value Plummeted by 3 Billion Magnesium What Happened

Pendles Total Asset Value Plummeted by 3 Billion Magnesium What Happened

According to data from DefiLlama, the total value locked (TVL) in DeFi protocol Pendle has seen an outflow of nearly $3 billion, with a majority being what’s known as Liquidity Rehypothecation Tokens (LRT).


Simultaneously, the price of PENDLE tokens has also plummeted from $6, breaking through the $5 mark.

Ian Unsworth, founder of Kairos Research, stated that the significant capital outflow from the Pendle protocol is mainly due to the expiration of certain products. On Pendle’s market, products related to Ether.fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH expired on June 27, leading to a substantial outflow of funds.
The DeFi protocol Pendle has experienced nearly $3 billion in withdrawals since last Wednesday due to the expiration of multiple market products, most of which were Liquidity Rehypothecation Tokens. By Monday, the total deposit value dropped to $3.7 billion, with Pendle’s TVL declining by 40% over the past week.
Ian Unsworth of Kairos Research conveyed to the media that these fund outflows are related to the expiration of certain products. It is noted that on the Pendle protocol, products associated with Ether.fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH all expired on June 27, triggering a massive outflow of capital.
Although investors still have the option to reinvest these LRT tokens into new Pendle markets, the potential returns are significantly different from the past, and with the potential airdrop event drawing closer, investors have decided against such a choice.