Pendle introduces a new management token to encourage wider adoption
As part of a broader update aimed at increasing adoption of the DeFi protocol, Pendle will replace the VEPENDLE token with a new liquid staking token, SPENDLE, management will begin retiring the token this month.
The long lock-in, complexity and interoperability issues baked into the profit trading platform's vePENDLE have become a “significant obstacle” for most users, despite strong progress in the underlying protocol.
In an announcement via X on Monday, Pendle unveiled SPNL, a new liquidity management and payment token that will replace Vependle as the protocol's main governance asset.
“We are excited to introduce sPENDLE, the next evolution of Pendle Tokenomics. This update is designed to address critical limitations of the vePENDLE system and opens up new opportunities for PENDLE owners and the protocol,” said Pendle.
SPENDLE is a managed token with liquid payouts and a 14-day withdrawal period, the team added.
SPENDLE goes live on Tuesday, while vePENDLE keys will pause on January 29. A snapshot will then be taken of the user's VEPENDLE balances.
On the same day, the new management structure under SPENDLE will be fully implemented.
According to data from DeFi Lama, Pendle is the 13th decentralized finance (DeFi) platform with a valuation of around $3.5 billion.
Better Tokinomics could benefit Pendle users.
In the post, Pendle said that despite strong platform growth over the past two years, Vepenle has faced “significant obstacles” that will ultimately limit “wider adoption.”
One key factor was the property's long lock-in period, during which users could not get their money back until the set time limits had expired.
Pendulum was designed to drive long-term commitment to the protocol, but failed to achieve that goal, he said. To overcome this, SPENDLE can withdraw at any time following a 14-day uninstall period or at any time for a 5% fee.
Other problems include a lack of interoperability as vePENDLE was not portable, meaning it could not be used on other DeFi platforms.
To address this, SPENDLE integrates with multiple DeFi platforms, allowing the asset to be used for recycling purposes.
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Pendle said the management structure is too complicated for most users as it requires active weekly participation to earn rewards from management contributions.
“A weekly vote-to-earn system requires a deep understanding of DeFi and market dynamics to optimize rewards,” he said.
While generating over $37M by 2025, the rewards of complex voting mechanics are concentrated among vePENDLE carriers who are knowledgeable enough to navigate the system effectively – a small segment of users.
To address this, Pendle is introducing a new management structure that makes it much easier for tenants. Instead of weekly participation, holders must only opt for “critical” Pendle Protocol Proposals (PPP) to remain eligible for management rewards.
If there is no PPP to choose from, you will automatically remain eligible.
Under this structure, Pendle will process PENDLE token purchases for administrative rewards using “up to 80% of protocol revenue.”
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