Pendle Finance has initiated a major transition in its token economics, formally retiring the legacy vePENDLE (Vote-Escrow PENDLE) mechanism and launching the new sPENDLE (Staked PENDLE) system. This strategic pivot eliminates the requirement for users to commit to multi-year lockups, addressing a common constraint of the original vote-escrow model while aiming to boost overall token liquidity and user flexibility.
The vePENDLE model, which granted governance power and boosted yield based on the duration of token lockups, is being phased out. Existing vePENDLE holders are being directed to migrate their locked positions to the new sPENDLE standard. This retirement reflects a broader trend in decentralized finance (DeFi) protocols moving away from excessively rigid capital requirements.
The launch of sPENDLE staking introduces a more dynamic framework. sPENDLE holders are still entitled to participate in governance decisions and receive protocol rewards, but without the long-term, illiquid commitment previously demanded. This mechanism is designed to be more accessible, potentially lowering the barrier to entry for new participants and encouraging deeper community engagement without forcing capital inefficiency.
Protocol analysis suggests that this change is intended to stabilize the token’s staking infrastructure, making PENDLE rewards and yield derivation more sustainable and liquid. The transition is crucial for ensuring that Pendle Finance remains competitive and attractive to yield maximizers seeking flexibility in how they manage their staked assets.
Source: Pendle retires vePENDLE multi-year lockups as sPENDLE staking goes live
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