Decentralized finance platform Pendle is shaking up its tokenomics with the launch of sPENDLE, a new liquid staking token set to replace vePENDLE as the protocol’s main governance and reward token.
The move comes after the team acknowledged that vePENDLE’s design was holding back wider adoption and creating barriers for users.
From vePENDLE to sPENDLE: A Token Evolution
In an announcement via X on Monday, Pendle introduced sPENDLE, describing it as “the next evolution of Pendle tokenomics.”
Unlike vePENDLE, which required long-term locking and complex engagement, sPENDLE offers liquid staking with a 14-day withdrawal period, giving users more flexibility over their assets.
“sPENDLE addresses the limitations of the old system while unlocking new opportunities for PENDLE holders and the protocol,” Pendle said, signaling a major shift in how users interact with the platform.
Key Dates and Transition Details
Staking with sPENDLE goes live on Tuesday, while vePENDLE locks will pause on January 29.
Pendle will take a snapshot of vePENDLE balances to help users smoothly transition to the new system.
The new governance structure under sPENDLE will roll out fully on the same day, simplifying participation and rewards.
vePENDLE’s Limitations and User Frustrations
Despite Pendle’s growth—boasting nearly $3.5 billion in total value locked according to DeFi Llama—vePENDLE had several notable drawbacks:
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Long lock-up periods: Users couldn’t access their funds until a set time elapsed, which discouraged broader adoption.
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Non-transferability: vePENDLE couldn’t be used across other DeFi platforms, limiting interoperability and creative DeFi strategies.
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Complex governance: Weekly vote-to-earn mechanics demanded deep DeFi knowledge, concentrating rewards among a small group of experienced holders.
Pendle admitted that these hurdles prevented vePENDLE from achieving its original goal of promoting long-term engagement.
How sPENDLE Changes the Game
sPENDLE is designed to be more user-friendly:
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Tokens can be withdrawn after a 14-day unwindig period or instantly with a 5% fee.
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It will be integrated with multiple DeFi platforms, allowing holders to use their tokens for activities like restaking.
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Governance is simplified: users only need to vote on critical Pendle Protocol Proposals (PPP) to maintain eligibility for rewards.
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If no PPPs are active, users remain eligible automatically.
Additionally, Pendle will use up to 80% of protocol revenue for PENDLE token buybacks, which will be distributed as governance rewards, providing a steady incentive for holders.
A Fresh Opportunity for Pendle Users
By replacing vePENDLE with sPENDLE, Pendle hopes to lower the barrier to entry, improve interoperability, and make governance more inclusive.
This upgrade could be a significant boon for users, allowing both newcomers and veterans to participate in protocol decisions without needing specialized expertise.
As DeFi continues to grow, Pendle’s sPENDLE initiative signals a trend toward more flexible, accessible tokenomics, where rewards are easier to earn and tokens are more versatile across platforms.
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