The Pencosystem continues to expand at a remarkable pace. What began as a niche protocol for yield tokenization is now evolving into a foundational layer of DeFi. Today, Pendle assets are increasingly recognized as reliable, yield-generating instruments, and are now accepted as collateral across some of the most prominent money markets in the space, including Aave, Morpho, Euler, and others. Looking ahead, here are some of the exciting developments we have on the Horizon. Fixed Yield for All: From Cross-Chain to Cross-Sector Pendle's ecosystem continues to scale meaningfully. PT adoption as collateral now exceeds $2.7B across DeFi, with Aave alone contributing over $2.1B of that value, with proposals already in motion to onboard more Pendle assets. Demand for PT in the space is clear. In Pendle 2025: Zenith, we shared that one of the Citadels would focus on expanding beyond EVM-compatible chains. Since then, our vision has broadened. Rather than limiting ourselves to non-EVM infrastructure, we’re now building toward cross-chain PTs. Portable, composable fixed yield assets that can be moved and utilized seamlessly across ecosystems. This unlocks a new design space: bridged PTs that can be used as collateral, yield farming tools, or capital-efficient building blocks across multiple chains. The first wave of this initiative will focus on cross-chain expansion into EVM-compatible networks and then non-EVMs shortly after, all without requiring full Pendle deployment on each target chain. But the appetite for fixed yield extends well beyond crypto’s borders. PT for TradFi In traditional finance, predictability is power. Institutions from pension funds to endowments rely on stable, recurring returns to meet obligations, optimize tax outcomes, and plan long-term portfolios. This is why fixed income dominates TradFi, with over $130 trillion in market size across instruments like treasuries, corporate bonds, and structured notes. DeFi hasn’t historically catered to this need, at least not until recently. Pendle's second Citadel addresses this gap. Our objective here is to create a dedicated PT distribution pipeline for regulated entities, that is a permissioned environment that gives TradFi allocators direct access to best-in-class, crypto-native fixed yields. Together with our DeFi partners, the “Pendle Permissioned” layer will operate with full KYC/AML compliance and serve as a gateway for institutional-grade capital to flow into DeFi yields. Pendle LP as Collateral Just last week, Morpho officially enabled the use of selected Pendle LPs as collateral. Curators like MEV Capital and K3 Capital have already stepped in, helping to bootstrap stablecoin liquidity for these new markets through their vaults. In just one week, Pendle LPs have already amassed ~$57M in collateral across Syrup, Morpho and Silo. While that figure may still trail PTs, the significance goes beyond raw numbers. LP collateral opens up a new segment of users with a different risk profile from your regular fixed yield connoisseur, expanding Pendle’s reach into a broader, more dynamic user base. From a user’s perspective, using LP as collateral enables access to leverage, boosting both yield and point farming potential without needing to deploy significantly more capital. For many who find YT exposure too risky, LP positions present a more balanced alternative with reasonable capital protection that still offers upside, but with comparatively lower risk. With looping now enabled, this has just become a much more powerful weapon in the hands of your average user. The introduction of LP collateral also contributes meaningfully to the depth of usable liquidity on the Pendle AMM. This, in turn, enhances swap efficiency and reduces slippage – both critical factors in enabling smooth and scalable PT trades. As liquidity improves, larger trades can be facilitated, and protocol volume increases – all these improvements collectively establish a more robust foundation for the onboarding of institutional capital as mentioned above. While PTs remain the instrument of choice for institutions and large capital allocators focused on capital preservation, LPs are emerging as a complementary offering geared toward a broader user base. Their accessibility and performance potential make them particularly well-suited for your average user. With regulatory developments trending in a positive direction (in particular, the US), the timing has never been better for DeFi to bridge into the broader financial world. There’s still plenty of work ahead, but the pieces are coming together. Job’s not done, but it'll be.