Pendle, a yield tokenization protocol, reached the position of the second-largest DeFi project on the XLayer network in less than 30 days. The platform accumulated $37,5 million in total value locked (TVL) on the OKX Layer 2 chain, which accounts for a significant portion of the network's total DeFi TVL of approximately $150 million.
The protocol launched on XLayer around August 11, 2026. Data from DefiLlama shows that the platform experienced a 268% surge in TVL over a seven-day period. This growth was primarily driven by a single market centered on USDG, a stablecoin issued by Paxos.
The integration with Aave V3 served as a key growth catalyst. Between August 31 and September 1, Aave V3 began accepting Pendle’s PT-USDG tokens as collateral with a loan-to-value ratio of 93.59%. Additionally, Aave introduced an incentive pool of $150 000 to support the integration.
Pendle currently operates across 14 blockchain networks with a cumulative TVL surpassing $1,2 billion. The protocol functions by splitting yield-bearing assets into Principal Tokens and Yield Tokens, allowing users to separate fixed and variable returns.