Yield trading protocol Pendle is taking steps to reverse the sharp 40% drop in Total Value Locked.
Pendle has introduced new pools on the Arbitrum network to attract LP (LPs). The new setup targets holders of UNI, LINK, ETH, WBTC, CRV, CVX, USDT and USDC.
The project has also established a partnership with reStaking protocol Karak Network, allowing depositors to stake Pendle 's Principal Token (PT) on the Karak platform and earn Karak points (XP).
“Earn more~ rewards on Karak XP with your PT-weETH, PT-rsETH and PT-ezETH,” Pendle tweeted.
On July 5, Pendle CEO TN Lee said that Pendle is collaborating with various protocols to recover from the TVL decline.
He said:
“We have talked to protocols and some protocols have offered higher multipliers.”
For example, EtherFi already offers a 4x multiplier, and the Pendle pool on Arbitrum also incentivizes LPs with ARB Token .
The TVL drop to $3.7 billion from a peak of $6.2 billion was triggered by the maturation of several liquid reStaking markets on June 27.
At the same time, the protocol's Pendle Token plummeted 50% before recovering some of its losses amid the ongoing cryptocurrency bull run.
On Pendle, Liquid reStaking Token (LRT) is Chia into Principal Token (PT) and Yield Token (YT).
When users Stake assets like ETH, they receive PT- ETH, which can be converted back to ETH when the Staking period ends.
YT represents rewards earned from Staking assets and can be traded separately.
Activity on Pendle peaks ahead of EigenLayer's highly anticipated Token generation event (TGE) as users look to maximize their EIGEN Airdrop allocation.
Lee explained that the maturation of these LRT pools, launched earlier this year, resulted in nearly $4 billion leaving the protocol.
Cryptocurrency analyst and influencer 2Lambroz. ETH explains that Karak supports two EtherFi assets – eETH(Karak) and weETHk.
eETH(Karak) refers to the LRT of EtherFi that has been wrapped and deposited directly into Karak. On the other hand, weETHk represents a combination of different LRTs and LSTs deposited into Karak via EtherFi.
Both offer the same points from EtherFi, but weETHk gives users double the points from Karak and additional VEDA points.
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