Pendle's Yield Tokenization Sees Trading Volumes Surge Amid Expiry Deadlines
Yield tokenization is a mechanism that separates yield-bearing assets into two tradeable tokens: one representing the principal and the other representing the future yield stream.
Pendle, the leading protocol around this idea, has seen trading volumes surge in May 2026 as expiry deadlines approach.
The mechanism introduces time-based expiry risk, which most standard DeFi products do not carry, making it more powerful but also more nuanced than basic staking.