Pendle becomes second-largest protocol on XLayer by TVL in under a month

Pendle needed less than 30 days to become the second-largest DeFi protocol on XLayer, OKX’s EVM-compatible Layer 2 network. The yield tokenization platform has amassed $37.5 million in TVL on the chain, a figure that represents a remarkable chunk of XLayer’s total DeFi TVL of roughly $150 million.

What makes this even more striking: nearly all of that capital flowed through a single market built around USDG, the Paxos-issued stablecoin backed by USD reserves and Treasuries.

How Pendle carved out a quarter of XLayer’s DeFi

Pendle launched natively on XLayer around August 11, 2026. Within weeks, the protocol’s TVL surged by 268% over a seven-day stretch, according to DefiLlama data.

The catalyst was a carefully orchestrated combination of liquidity incentives and cross-protocol integration. On the incentive side, Pendle rolled out LP rewards designed to attract capital into its USDG yield market. On the integration side, the real accelerant was Aave V3.