Spartan Capital Backs Pendle Finance to Fuel Growth in DeFi Interest Rate Derivatives Market

Spartan Capital is excited to share that we have recently made a follow-on investment in Pendle Finance through an OTC purchase. At Spartan Capital, we recognize the transformative potential of Pendle and their pivotal role in driving the advancement of on-chain yield trading. Our strong partnership with Pendle dates back to its inception, and we are proud to have been loyal supporters of their vision since V1 in 2021. With this strategic investment, we will be able to further support Pendle on their next leg of their journey, and position Spartan Capital alongside innovative projects poised to reshape the digital finance landscape.

In the realm of traditional finance, interest rate derivatives is one of the largest markets, boasting a yearly notional value exceeding hundreds of trillions of dollars. These derivatives serve as essential tools for institutional and sophisticated investors to speculate, hedge and trade rates. As the DeFi sector continues to mature, interest rate swaps are poised to become a one of the key financial primitives within the DeFi ecosystem.

This year, Pendle Finance carved a name for itself as one of the leaders in Liquid Staking Derivatives (LSD) and LSDfi development. They have recently expanded their support to also cover Real World Assets (RWA), enabling participants to speculate and trade real-world yields. This will pave the way to usher more traditional off-chain capital to the on-chain world, catering to RWA investors seeking optimal yield exposures and enhanced liquidity through Pendle’s platform.

“The convergence of Liquid Staking Derivatives and Real World Assets presents an exceptional growth opportunity for the DeFi sector. Pendle’s pioneering efforts position them at the forefront of these exciting developments. Their yield trading toolkit is designed to complement and bring value to any digital, yield-bearing assets, which also means that Pendle will be in a unique position as an accelerant for more future DeFi developments,” commented Kelvin Koh, Managing Partner of Spartan Capital.

In the words of Pendle Finance CEO TN, “We’re truly grateful for Spartan Capital’s unwavering support. Collaborating with like-minded partners fuels our drive to expand the on-chain yield market and nurture Pendle to become the premier yield-trading protocol in the digital space.”

According to DefiLlama, Pendle’s TVL has grown by 2,442% since the inception of Pendle V2 ($7.55M on Nov 30, 2022), placing them in the Top-50 by TVL at $191M currently.