# What is Pendle Finance? PT, YT and When to Skip It

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**Publisher:** Decentralized Finance Publication (https://decentralized-finance.io)
**Author:** Kaiser Khan
**Reviewed by:** Kaiser Khan, Editor in Chief
**Category:** Top DeFi Protocols
**Updated:** June 2026
**Trust:** Independent, ad-free editorial research. No display advertisements, no paid protocol coverage, no affiliate-driven rankings.

## Summary

Use Pendle at app.pendle.finance when you already hold a yield-bearing asset and you want a rate you can name until maturity by buying PT. Skip Pendle if you need same-day liquidity without selling on the AMM, or you have never used Aave. Educational research, not financial advice.

## Should you use Pendle?

Yes — if you already understand the underlying yield token and you want to lock a rate via PT or trade yield via YT. Skip it as a first DeFi app. Aave is the flexible variable-rate path. Pendle is a rate decision with a maturity date.

DeFiLlama snapshot 2026-08-27: about $1.2 billion TVL for this listing. That is lockup, not a safety rating — re-check the live figure before you size anything.

## What is Pendle and how do PT and YT work?

Pendle splits a yield-bearing token until a fixed maturity. PT redeems one unit of underlying at that date if you hold it. YT receives the yield until then. Buying PT below redemption is how the implied fixed rate appears. Selling early is an AMM price, not the maturity value.

## Pendle vs Aave — which should you use?

Aave when you want to supply or borrow with a health factor and leave when you like, subject to liquidity. Pendle when the maturity and implied rate are the whole point. Do not farm YT because a dashboard number is large — YT can decay to zero at maturity.

## Which Pendle risks actually bite?

Underlying depeg, implied-rate moves if you exit early, and YT going to empty at expiry. Pendle’s AMM is another contract. Our how-to guide covers the click path; this page is the decision whether a maturity-dated rate is what you wanted versus Aave.

## Where is the official Pendle app?

The app we name is app.pendle.finance. You should already understand the underlying yield token — stETH, sUSDe, or similar. This page is whether PT or YT is the right instrument. Beginners should supply on Aave first, then return to Pendle.

## Frequently Asked Questions

- What is Pendle? A yield-tokenisation protocol: PT and YT until a maturity, at app.pendle.finance. PT is a claim at that date if you hold it. YT is the yield stream and can expire worthless.
- Is implied APY guaranteed? Only in the sense that holding PT to maturity realises the discount — if the underlying redeems. Not a bank coupon. Selling early is an AMM price.
- Should beginners start here? No. Use Aave first. Pendle is a rate decision with a maturity date, not a flexible savings pool.
- Does this page recommend buying YT? No. Educational research only. We do not recommend PT, YT, or PENDLE.

## Sources

- [Pendle](https://app.pendle.finance): Official app
- [Pendle on DeFiLlama](https://defillama.com/protocol/pendle): Live TVL

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