Pendle launches USDG market on XLayer with exclusive incentives

Pendle Finance has expanded to XLayer, OKX’s zkEVM Layer 2 network, with its first yield market for USDG. The market, which carries an October 2026 maturity date, lets users lock in fixed returns on a regulated dollar-pegged stablecoin. The move marks another step in Pendle’s multi-chain expansion and its growing push into real-world asset and stablecoin yield markets throughout 2026. It also represents a meaningful moment for USDG, the Paxos-issued stablecoin that has been live on XLayer since September 2025, now gaining a dedicated venue for yield generation. How the market works Pendle’s core product splits yield-bearing assets into two components: Principal Tokens (PT) and Yield Tokens (YT). PT holders receive a fixed return at maturity. Buy a PT representing $100 of USDG at a discount today, redeem it for the full $100 worth in October. The difference is your yield, known upfront. YT holders take the opposite side of that trade. They’re speculating that the floating yield on USDG will exceed what the market currently prices in. If rates spike, YT holders win. If rates fall, they eat the loss. Bringing the same mechanics to XLayer means users can access these strategies with lo...