Pendle Introduces New Governance Token To Spur Broader Adoption

Decentralized Finance (DeFi) yield platform Pendle is replacing its vePENDLE governance and reward token with a new liquid staking token called sPENDLE to address limitations that hindered broader adoption. The move aims to unlock new opportunities for PENDLE holders. The primary issues with vePENDLE were long, non-transferable lock-up times, which prevented interoperability across other DeFi platforms, and a complex weekly voting system that concentrated rewards among expert users. The new sPENDLE token features a 14-day withdrawal period, with an option for instant withdrawal for a 5% fee, and will be interoperable with other DeFi platforms for uses like restaking. Furthermore, the governance structure is simplified; holders only need to vote on critical Pendle Protocol Proposals (PPP) to remain eligible for rewards. Pendle will also use up to 80% of protocol revenue for PENDLE token buybacks to distribute as governance rewards. The transition begins Tuesday, with vePENDLE locks pausing on January 29th and a snapshot taken of user balances.

(Source：Cointelegraph)