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      Pendle Achieves Second-Largest DeFi Protocol Status on XLayer in Less Than a Month

      Pendle has rapidly ascended to become the second-largest decentralized finance (DeFi) protocol on OKX's XLayer, achieving a total value locked (TVL) of $37.5 million in under 30 days. This growth represents a significant portion of XLayer's total DeFi TVL, which is approximately $150 million. The surge in capital is primarily attributed to a single market centered around USDG, a stablecoin issued by Paxos that is backed by USD reserves and Treasuries.

      The protocol launched on XLayer on August 11, 2026, and saw its TVL increase by 268% within a week, driven by strategic liquidity incentives and integration with Aave V3. Pendle introduced liquidity provider rewards to attract investments into its USDG yield market, while Aave V3 began accepting Pendle's principal token (PT-USDG) as collateral, offering a loan-to-value ratio of 93.59%. This integration allowed users to leverage their deposits, creating a cycle of demand that benefited both Pendle and Aave.

      USDG's dominance on XLayer is notable, as it constitutes over 92% of the network's stablecoin market cap, estimated at $1.7 billion. This concentration enables protocols like Pendle to effectively tap into the ecosystem's stable capital by offering attractive yield products. Pendle's strategy on XLayer focuses on stablecoins and yield markets linked to real-world assets, further enhancing its appeal in the DeFi landscape.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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