Pendle Loop, automating deposit, borrowing, and buying… supporting U.S. stock tokens

Pendle launched PendleLoop on October 22, automating the deposit-borrow-buy loop for yield-bearing assets and expanding looping beyond principal tokens (PT) to include other interest-bearing assets and U.S. equity-linked tokens. The product lets users deposit collateral, borrow against it, buy more of the same asset, and re-deposit it in a single automated flow, building on the PT Looping beta completed in September 2026. Looping amplifies underlying yield but also magnifies borrowing costs and losses, making the automation a bid to simplify leveraged yield strategies for Pendle (PENDLE) users. The move matters because it widens Pendle's addressable collateral base into tokenized equities, a fast-growing segment tying DeFi yields to traditional markets. What to watch next is adoption of the new equity-token collateral and whether automated looping draws fresh deposits and borrowing demand to the protocol.