Pendle's TVL jumps 43% in Q3 to $1.16B despite 58% cut in token incentives

Pendle's total value locked (TVL) rose 43% in Q3 2026 to $1.16 billion, driven mainly by growth in real-world asset markets, which made up 82% of TVL. This growth occurred even as Pendle cut its PENDLE token incentives by about 58%. The protocol increased buybacks, repurchasing 3.2 tokens for every one distributed, benefiting stakers. However, V2 revenue fell to $2 million due to lower trading fees. The key challenge ahead is managing $1.06 billion of TVL maturing by mid-December, with the buyback ratio and use of Principal Tokens as collateral critical for sustaining growth.

Pendle's recent TVL gain contrasts with its token performance on Pluang, where PENDLE trades at Rp35.037, down 2.47% as of Oct 29, 2026 09:32 WIB. Despite the protocol's strong buyback efforts, the market cap stands at Rp6.2 trillion with a high sell order activity of 87%. This divergence highlights the challenge of translating on-chain growth into token price momentum.