What Pendle does in one paragraph
Pendle takes a yield-bearing token — stETH, aUSDC, sUSDe, or similar — and splits it into two tradeable parts until a fixed maturity date. PT (Principal Token) represents the right to redeem the underlying at maturity. YT (Yield Token) captures all yield generated until that date. By buying PT at a discount, you effectively lock in a fixed yield rate for the period.
Step-by-step: Buying PT for fixed yield
- 01
Connect to app.pendle.finance
Visit app.pendle.finance on Ethereum, Arbitrum, or BNB Chain. Connect your wallet (MetaMask, Rabby, or WalletConnect). Verify the URL — phishing sites mimic Pendle.
- 02
Choose your underlying asset
Browse Markets and filter by asset type: LSTs (stETH, rETH), lending tokens (aUSDC, aETH), or stablecoin yield (sUSDe). Each market shows the underlying, current variable yield, and available maturities.
- 03
Select a maturity date
Each market has multiple maturity dates (e.g. 26 Dec 2026, 27 Mar 2027). Longer maturities often offer higher fixed rates but lock capital longer. Choose based on your time horizon.
- 04
Buy PT
Click the market, select 'PT' tab, enter the amount of underlying you want exposure to at maturity. The interface shows implied APY — your fixed rate if held to maturity. Confirm the swap.
- 05
Hold or redeem at maturity
At maturity, 1 PT redeems for 1 unit of the underlying (e.g. 1 stETH). You can also sell PT on Pendle's AMM before maturity if you need early exit — price depends on remaining time and rate expectations.
When Pendle beats Aave variable lending
Aave lending rates fluctuate with pool utilisation — they can drop from 8% to 2% within weeks. Pendle PT locks your rate at purchase. Use Pendle when you want rate certainty for treasury management, when you believe variable rates will fall, or when farming points via YT for airdrop exposure.
Use Aave instead when you need instant liquidity, want to use your deposit as collateral for borrowing, or believe variable rates will rise above current Pendle implied yields.
Compare Pendle implied APY against current Aave supply rates at the same maturity. If PT implied yield is 2%+ above Aave's current rate, locking via PT may be attractive — especially in declining-rate environments.
Frequently asked questions
What is a PT token on Pendle?
PT (Principal Token) represents the right to redeem 1 unit of the underlying yield-bearing asset at a fixed maturity date. Buying PT at a discount locks in a fixed yield rate for the period until maturity.
What is implied APY on Pendle?
Implied APY is the annualised fixed yield you earn if you buy PT at the current market price and hold to maturity. It is calculated from the discount between PT price and the underlying redemption value.
Can I exit Pendle PT before maturity?
Yes — sell PT on Pendle's built-in AMM at the current market price. Early exit may result in a different realised yield than the implied APY at purchase, depending on rate movements and time remaining.
Is Pendle safe?
Pendle has operated since 2021 and holds $4B+ TVL. Risks include smart contract bugs, underlying asset depeg risk (if PT is backed by stETH or sUSDe), and liquidity risk when selling PT before maturity in thin markets.
Pendle vs Aave — which is better?
Neither is universally better. Pendle PT locks a fixed rate; Aave offers flexible variable-rate lending with instant withdrawal. Use Pendle for rate certainty; use Aave for flexibility and collateral utility.