Pendle Denies Hack After Wallet Drained in Minting Exploit

• Pendle reports wallet drain exploit involving unauthorized PT and YT token minting.
• PENDLE price dips 4.8% to $4.51, though trading volume surges 61.5% to $146.9M.
• Protocol TVL holds at $6.48B, showing strong user engagement despite volatility.

Pendle, a decentralized yield tokenization and trading protocol, has responded to an issue involving an onchain wallet drainage. The protocol disclosed that an exploiter had been minting Principal Token (PT) and Yield Token (YT), then swapping them for Ethereum (ETH). 

Pendle disclosed that an attacker drained an onchain wallet in what appears to be a token minting exploit. The attacker managed to mint PT and YT tokens without any apparent intervention from Pendle’s security systems, leading to speculation about the exploit’s origins. According to Pendle’s post on X, the exploited tokens are being swapped for ETH. However, the team maintains that no hack took place, arguing that the protocol’s integrity and user funds remain unaffected.

Despite the concerns around this drain, Pendle has not provided specific details on how the attacker minted the PT and YT tokens. The protocol is continuing its investigation and has pledged to offer more updates as the situation evolves. The incident occurs just before Pendle introduces Plasma chain to its network, which will feature a native stablecoin designed to boost the platform’s total value locked (TVL).

Pendle’s Market Performance Following Token Exploitation 

Following the Pendle exploit, the token experienced a decline in its price. The token, which was previously trading at $4.72, dropped to $4.51, reflecting a 4.8% loss over the past 24 hours. Despite the price dip, the token has retained large market activity, with a 61.54% increase in 24-hour trading volume, reaching $146.95 million.

Its market capitalization stands at $764.7 million, with a fully diluted valuation (FDV) of $1.27 billion, corresponding to the expected market size if all tokens were to be released.

Pendle’s Total Value Locked (TVL) Remains Strong Despite Market Volatility

The protocol’s Total Value Locked (TVL) remains a key indicator of its user engagement. Pendle currently has a total value of $6.48 billion, which remains constant despite market fluctuations. The TVL shows that Pendle’s yield-bearing asset model continues to attract users, with the protocol providing decentralized solutions for tokenizing and trading future yields on assets like staked tokens and lending positions.

Additionally, Pendle’s platform has attracted a large number of participants, with 146,430 individuals holding the token. The market cap-to-TVL ratio stands at 0.116, representing a good liquidity level in relation to the amount of value locked within the platform. However, the recent price action has raised concerns about short-term volatility, as the token’s value has fallen from $4.72 to its current price of $4.51.