DeFi protocol Pendle PENDLE -2.41% 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 currently.

The large drop in TVL can be attributed to certain 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 once. Market pools mature after a certain period.

In the first two quarters of this year, Pendle benefited tremendously from increased inflows from liquid restaking protocols — primarily in anticipation of airdrops such as EigenLayer.

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Pendle had introduced a rollover feature in its application and provided a comprehensive guide to assist existing users in transitioning their liquidity to new pools. The mechanics of Pendle allowed users to claim the underlying assets and yield tokens, resulting in a notable decrease in TVL amid an apparent waning interest in EigenLayer-focused LRTs.

Recently, the project has rolled out several LRT markets via Mellow focused on another restaking protocol Symbiotic.