Since June 27, the total value locked (TVL) in the DeFi protocol Pendle has dropped by 40%—from $6.19 billion to $3.7 billion. This was highlighted by DL News.
The majority of the withdrawn funds, nearly $3 billion, consisted of liquid restaking tokens, the publication noted.
The TVL collapse followed the conclusion of campaigns on the platform involving five leading LRT assets: eETH (from Ether.Fi), ezETH (Renzo), pufETH (Puffer), rsETH (Kelp), and rswETH (Swell). Like Pendle, they enable interaction with the EigenLayer protocol.
Experts believe that a significant reason for the outflow was the waning interest in airdrops from projects in the segment.
Referring to the “big redemption on June 27,” the team provided instructions on how to transfer liquidity (including base assets and earned income) to other pools on the platform for further earnings. However, most clearly preferred to withdraw tokens.
Heads up, Pendies ?
The big 27 June maturity will be upon us soon.
What can you do?
What should you do?
Here’s all that you need to know about matured pools ?? pic.twitter.com/g4WfnClatf
— Pendle (@pendle_fi) June 26, 2024
“This is because many invested in EigenLayer and several affiliated projects like Pendle in preparation for anticipated airdrops—the distribution of free coins among early and loyal users,” DL News suggested.
Most of the distributions have already occurred. The first phase of the EIGEN “stakedrop” by EigenLayer began on May 10, with the second phase starting on June 19.
LRT platforms Renzo and Ether.Fi conducted distributions in April and March, respectively. They also plan to hold new “seasons” of giveaways.
“The next airdrops will be smaller, so you see some participants reducing risks. Additionally, the Renzo points program ends in late July, so I think many are probably considering whether to lock their tokens again,” commented Kairos Research founder Ian Answorth.
In June, the launch of EigenLayer’s competitor, the “permissionless flexible restaking protocol” Symbiotic, supported by Lido Finance founders, took place.