Pendle Brings Private Infrastructure Equity to Tokenized Trading

Pendle, a DeFi protocol that allows users to trade future yield like a commodity, has expanded its offerings by integrating with NGI+, a tokenized infrastructure product built by Asseto. This integration enables Pendle users to deposit the yield-bearing token and split it into two tradable components: one locks in a fixed return, while the other captures variable upside.

The mechanics behind this work similarly to Pendle's core model. A yield-bearing asset is wrapped in the protocol's SY mechanism, resulting in the creation of Principal Tokens (PT) and Yield Tokens (YT). The PT trades at a discount to the underlying asset and can be redeemed at face value when it matures.

The new integration brings private infrastructure equity linked to Partners Group's Next Generation Infrastructure strategy into Pendle. This strategy focuses on direct and secondary investments in areas like digitization and decarbonization, with an impressive cumulative net return of 48.8% since its inception in February 2024.