According to data from DefiLlama, the total value locked (TVL) in the DeFi protocol Pendle has seen an outflow of nearly $3 billion recently, most of which are so-called liquidity re-staked tokens (LRT). Meanwhile, the price of the PENDLE token has dropped from $6 to below $5.
Ian Unsworth, founder of Kairos Research, stated that the significant capital outflows from the Pendle protocol are mainly related to the expiration of some products. Products associated with Ether.fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH on the Pendle market expired on June 27, leading to a substantial outflow of funds.
Due to the expiration of multiple market products, Pendle users have withdrawn nearly $3 billion in deposits since last Wednesday, most of which are liquidity re-staked tokens. On Monday, the total value of user deposits dropped to $3.7 billion, with Pendle’s TVL decreasing by 40% over the past week.
Ian Unsworth, founder of Kairos Research, told the media that these capital outflows are related to the expiration of some products. It is reported that products associated with Ether.fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH on the Pendle protocol expired on June 27, triggering substantial outflows of funds.
Although investors can still choose to invest these LRT tokens in new Pendle markets, they may be deterred by the returns being significantly different from the past and the approach of potential airdrop events, leading them to forgo this option.
