PENDLE Finance Describes Itself As

Pendle is a protocol that enables the tokenization and trading of future yield. With the creation of a novel AMM that supports assets with time decay, Pendle gives users more control over future yield by providing optionality and opportunities for its utilization.

Pendle Finance separates the ownership of an asset and its future yield into a Principal Token (PT) and a Yield Token (YT), allowing investors to speculate on the future yield of an asset without having to own the asset itself. YT tokens receive yield until their expiry date, at which point their value will fall to zero. At expiry, the owner of the PT can choose to roll  forward to a new expiry, or redeem the underlying asset,

PENDLE is the native token of the Pendle Finance ecosystem, and primarily serves as an incentive and governance token. Users that provide liquidity to the platform are rewarded in PENDLE and a percentage of trading fees. PENDLE can be locked via smart contract for up to two years, in exchange for vote-escrowed PENDLE (vePENDLE). vePENDLE grants holders both voting and economic power - earning 3% of all yield accrued by YT on the platform, and boosting rewards and PENDLE incentives for liquidity provision by up to 250%  

Pendle Finance was officially launched in June 2021 by an pseudo-anonymous team, publicly known as TN lee, GT, YK, and Vu. The project has attracted notable investors, including Bitscale Capital, Crypto.com | Securely Buy, Sell & Trade Bitcoin, Ethereum and 250+ Altcoins Capital and Binance Labs. 

Risks of PENDLE

Like an investment in other crypto assets, there are some general risks to investing in PENDLE. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in PENDLE is subject to the following specific risks:

• Pendle Finance operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 
• Pendle Finance relies on a global network of PENDLE holders, contributors, and validators to develop and operate the network and its associated ecosystem. 
• The Pendle Finance was launched by an anonymous/pseudonymous team, known by TN lee, GT, YK, and Vu.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with PENDLE. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The PENDLE community and Pendle Finance founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of PENDLE have no recourse to the PENDLE community, Pendle Finance founding team, or Uphold if PENDLE declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing PENDLE on the Uphold Platform, Uphold performed due diligence on PENDLE and determined that PENDLE is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of PENDLE, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of PENDLE.
• Any marketing materials put forward by the PENDLE social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with PENDLE, including any code defects, security breaches and other threats concerning PENDLE and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with PENDLE, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PENDLE.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on March 5, 2024.