Pendle Finance, a prominent decentralized finance (DeFi) protocol specializing in yield trading solutions, is staging a strong recovery following a major security breach earlier this year.

The incident, involving a malicious DNS redirect and domain hijack attempt, led to a temporary shutdown of Pendle’s app.

However, swift action by Pendle’s team to regain control and ensure user fund safety has set the stage for a significant comeback.

PENDLE token price rebounds

Pendle’s native token, PENDLE, has shown a notable recovery, surging by 15.8% over the past 14 days. At the time of writing, the token was trading at $4.22.

Despite this upward trend, the price remains over 43% below its all-time high of $7.52, achieved in April 2024.

The token’s listing on Binance at the beginning of this month has contributed to its recent price rebound.

Pendle launches new liquidity pools on Arbitrum

To counteract the decline in Pendle’s total value locked (TVL), which has dropped from a peak of $6.2 billion to $3.927 billion according to DeFiLlama, Pendle Finance has introduced new liquidity pools on the Arbitrum network.

These pools are designed to attract liquidity providers (LPs) holding assets such as UNI, LINK, ETH, WBTC, CRV, CVX, USDT, and USDC. By expanding its liquidity offerings, Pendle aims to bolster its TVL and restore user confidence.

Pendle recently launched Liquid Restaking Tokens (LRTs), which are divided into Principal Tokens (PTs) and Yield Tokens (YTs).

These tokens represent staked assets and earned rewards, respectively, and have driven substantial activity on the platform.

This innovation has enhanced Pendle’s value proposition, offering users more flexibility and opportunities within the DeFi ecosystem.

Pendle has also formed a strategic partnership with the restaking protocol Karak Network.

This collaboration allows depositors to place Pendle’s Principal Tokens (PT) on Karak’s platform and earn Karak points (XP).

Additionally, Karak’s partnership offers incentives such as ARB tokens for liquidity providers on Arbitrum.

Users can earn rewards on top of Karak XP with their PT-weETH, PT-rsETH, and PT-ezETH, enhancing the value proposition for participants.

Broad strategy for rebound

These initiatives—the introduction of liquidity pools on Arbitrum and the partnership with Karak Network—are part of a broader strategy to rebound from the TVL drop, exacerbated by the maturation of several large liquid restaking markets and a significant decline in the PENDLE token price.

Pendle is actively collaborating with various DeFi platforms to offer higher multipliers and additional incentives. For example, EtherFi has provided a 4x multiplier to enhance the appeal of Pendle’s pools on Arbitrum.

Expanding services and enhancing user engagement

Founded in 2022, Pendle Finance initially focused on the Ethereum network before expanding to include BNB Chain, Arbitrum, and Optimism. Its core offering involves the tokenization and trading of future yields within the DeFi sector, enabling users to optimize their yield management strategies.

The recent integration with Karak Network and the launch of new liquidity pools reflect Pendle’s commitment to expanding its services and enhancing user engagement across multiple blockchain platforms.

Pendle Finance’s robust response to the security breach, strategic partnerships, and innovative product offerings indicate a resilient trajectory, positioning the protocol for future growth and stability within the competitive DeFi landscape.

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