Pendle became the second-largest DeFi (decentralized finance) protocol on XLayer, OKX’s EVM-compatible Layer 2 network, in less than 30 days after launching natively around August 11, 2026. Its total value locked reached $37.5 million, representing roughly a quarter of XLayer’s approximately $150 million in DeFi TVL. Nearly all of the capital entered through a market centered on USDG, the Paxos-issued stablecoin backed by U.S. dollars and Treasuries. Pendle’s TVL rose 268% over seven days, helped by liquidity incentives and the integration of Aave V3 on XLayer. From around August 31 to September 1, Aave began accepting Pendle’s PT-USDG principal token as collateral, with a 93.59% loan-to-value ratio and a $150,000 incentive pool. Pendle now operates across 14 blockchain networks with cumulative TVL above $1.2 billion, while its XLayer strategy focuses on stablecoins and Real World Asset-linked yield markets.