What Is Fixed Yield in DeFi?
Fixed yield is becoming one of the key building blocks in DeFi — and Pendle sits right at the center of this shift. As the protocol that turns yield into a tradable market, Pendle reshapes how predictable returns are created, priced, and accessed onchain.
At EarnPark, Pendle is one of the core protocols we use to deliver stable, transparent, and repeatable returns.
That’s why we put together a short and simple interview with the Pendle team — to explain how the PT/YT market works and why it has become the foundation of fixed income in DeFi.
How EarnPark Integrates Pendle
EarnPark relies on Pendle as a base layer for transparent, predictable returns. Principal Tokens (PT) lock in a fixed rate to maturity, while Yield Tokens (YT) create a market for variable yield and incentives.
In practice:
EarnPark accesses fixed rates on assets like ETH, USDC, RLP, USR, and stETH. These rates are known up front and remain constant until PT maturity, which suits strategies targeting stable returns.
Periodically, demand for YT spikes (for example, when traders lever up to farm points that may convert into airdrops). Strong YT demand lifts the implied rate on PT, so the effective fixed yield can end up higher than the baseline.
This creates a useful mix for EarnPark strategies:
- Stability: fixed, predictable income by holding PT to maturity.
- Upside: additional profitability when YT demand pushes PT rates higher.
- Balance: a practical blend of dependable returns with opportunistic yield when market incentives heat up.
Interview with Pendle
(Unedited Q&A as provided by the Pendle team.)
Protocol mission: In your own words, what problem does Pendle solve in DeFi today?
Pendle brings the interest rate swap market onchain. By turning yield into a tradable asset through PTs and YTs, we enable users to lock in fixed rates, hedge variable yields, and speculate, just like the $400T+ fixed-income markets in TradFi.
Fixed rate is foundational for any mature financial system. It anchors risk, enables long-term planning, attracts institutional capital, and creates real price discovery for onchain yields. Without fixed rates, DeFi remains volatile and difficult to build on. Pendle fills that gap.
Unique edge: What makes Pendle stand out compared to alternatives?
If we’re talking about the yield vertical, Pendle is the largest and incumbent rate-swap protocol in DeFi. Yield is foundational to the ecosystem, and Pendle is the primary distributor of fixed yield onchain. We’ve already settled $75B+ of PT. Clear, sustained demand.
Our architecture also lets us adapt to any narrative. With Boros, we can tap into yields beyond crypto, like funding rates, T-Bills, even mortgages. In a world where everything has a yield (bonds, credit, real estate), Pendle’s design gives us massive expansion potential.
Institutional adoption: How do you see platforms like EarnPark using Pendle to grow the ecosystem?
Platforms like EarnPark can package Pendle PTs into simple, compliant fixed-income products for users who don’t want to manage DeFi complexity directly. PTs give them predictable returns, transparent rates, and deep liquidity. All essential for institutional-grade offerings. By building on Pendle, platforms like EarnPark help expand distribution, bring in new user segments, and ultimately push Pendle’s fixed-yield markets deeper into the mainstream.
Security: What safeguards are in place to protect user funds?
Pendle has one of the strongest security records in the sector: multiple top-tier audits, battle-tested contracts that have processed billions, conservative design with no unnecessary complexity, and zero security incidents since launch. We also run an in-house monitoring system 24/7, which alerts us to abnormal activity within seconds. In past incidents involving other protocols building on top of Pendle, this system allowed us to react immediately, even when the issue wasn’t on our side.
Roadmap: Are there any upcoming upgrades users should watch for in the next 6–12 months?
A few major milestones:
- Cross-chain PT expansion, including non-EVM chains like Solana.
- Pendle Permissioned, our institutional gateway for regulated fixed-yield products.
- Citadels, expanding PT distribution and unlocking new types of fixed-income markets.
- And of course, Boros, which continues to grow rapidly with new assets (HYPE, SOL), new venues, and more sophisticated yield markets, including off-chain yields like stocks, as enabled by Hyperliquid’s HIP-3.
User education: What’s one misconception about Pendle you’d like to clear up?
That getting listed on Pendle is difficult. Today, it’s fast and straightforward. We’ve built a dedicated listing portal that streamlines the entire process for any asset with yield or points. That’s why you’re seeing an explosion of new stablecoins, LRTs, and synthetic dollars on Pendle. And the next step is going fully permissionless, where anyone can list instantly without coordination.
What Pendle’s Growth Means for EarnPark Users
For EarnPark’s strategies, Pendle functions as reliable income infrastructure with built-in optionality:
- Predictability: PTs lock in fixed returns through maturity, making returns clearer and easier to plan.
- Potential for more: when incentives attract capital to YT, implied PT rates rise — and effective yields can exceed the baseline.
- Risk-aware design: the strategy is anchored in transparent rates on liquid assets (ETH, USDC, RLP, USR, stETH), complemented by a protocol that emphasizes audits, monitoring, and conservative architecture.
We’re excited to continue building on top of Pendle and to bring more users into the world of fixed income — without the complexity of managing it themselves.