Crypto: Defi Protocol Pendle Revamps Governance Token, Citing Low Adoption

Pendle will begin to slowly phase out its governance token vePENDLE and replace it with sPENDLE this month, offering a more flexible model it hopes will boost adoption.

DeFi protocol Pendle will begin phasing out its vePENDLE governance token this month, replacing it with a new liquid staking token called sPENDLE as part of a broader overhaul aimed at boosting adoption.

The yield-trading platform said the long lock-ups, complexity and lack of interoperability baked into vePENDLE had become “significant barriers” for most users, despite strong growth in the underlying protocol.

In an announcement via X on Monday, Pendle unveiled sPENDLE, a new liquid governance and fee token that will replace vePENDLE as the protocol’s primary governance asset.

“We’re excited to introduce sPENDLE, the next evolution of Pendle tokenomics. This upgrade is designed to address critical limitations of the vePENDLE system, while unlocking new opportunities for PENDLE holders and the protocol,” Pendle said.

sPENDLE is a liquid fee and governance token with a 14-day withdrawal period, the team added.

sPENDLE staking will go live on Tuesday, while vePENDLE locks will be paused on Jan. 29. A snapshot will then be taken of user vePENDLE balances to aid with the switchover.

On the same day, the new governance structure under sPENDLE will fully roll out.

According to data from DeFi Llama, Pendle is the 13th-largest decentralized finance (DeFi) platform in terms of total value locked at almost $3.5 billion.

In the post, Pendle said that despite strong platform growth over the past couple of years, vePENDLE ultimately caused “significant barriers” that limited “broader adoption.”

Source: CoinTelegraph