DeFi protocol Pendle experienced a 40% decrease in its total value locked over the past week — going from $6.18 billion on June 27 to $3.7 billion now.

The large drop in TVL can be linked to the maturation of liquid restaking markets consisting of Ether.Fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH that were initiated earlier this year and matured on June 27, DL News first reported.

Pendle is a DeFi platform that allows users to trade yield-bearing crypto assets, such as staked ether and LRTs, in a more flexible way. With the Pendle protocol, the yield-bearing asset is separated into two components: the underlying token value and the yield element. This enables users to buy and sell either the underlying token or the yield without having to trade both at …