Pendle, a prominent player in the DeFi landscape that spearheaded the EigenLayer movement, recently encountered a significant setback with a 40% decline in its total-value-locked (TVL). Initially boasting over $6 billion in user deposits, Pendle underwent considerable losses, shedding nearly a third of its total value. Users withdrew a substantial $3 billion from Pendle deposits, with a significant portion related to liquid re-staking tokens. As of the latest update, the user deposits in Pendle amount to $3.7 billion. The recent outflows from Pendle stemmed from the maturation of various Pendle markets and the completion of substantial airdrops. These withdrawals from Pendle also reverberated through other protocols like Zircuit.
The recent exodus from Pendle was triggered by multiple factors. Investors opted to refrain from re-staking their tokens in Pendle post-token maturity, citing diminished returns. Users are strategically adjusting their investments to mitigate risks in anticipation of reduced forthcoming airdrops. Analysts, including Kairos Research founder Ian Unsworth, highlighted that the recent outflows were partly due to certain products reaching maturity simultaneously. The alignment of maturity for the top five LRTs played a key role in this development. Additionally, the prevalence of airdrops, known to drive fluctuating trends in different protocols, contributed to the outflow.
Pendle encountered a notable maturity event on June 27, culminating in the closure of Pendle markets for tokens like Ether.Fi’s eETH, Puffer’s pufETH, Renzo’s ezETH, Kelp’s rsETH, and Swell’s rswETH. Despite the option for investors to transfer these tokens to new Pendle markets, the returns proved less enticing. Many investors initially ventured into DeFi protocols like EigenLayer and Pendle in anticipation of airdrops. Early EigenLayer users claimed a share of the native $1.6 billion worth of EIGEN tokens in May. Furthermore, liquid re-staking protocols like Ether.Fi and Renzo, offering access to EigenLayer, distributed their tokens in March and April respectively. These projects will distribute their tokens in subsequent phases, providing users with additional opportunities to partake in future airdrops.
