DeFi yield protocol Pendle announced it will phase out vePENDLE and replace it with a new governance token called sPENDLE.
The change is aimed at addressing low adoption caused by limitations in the existing token design.
Pendle said sPENDLE will serve as both a liquid governance and fee token.
“We’re excited to introduce sPENDLE, the next evolution of Pendle tokenomics,”
Pendle said.
“This upgrade is designed to address critical limitations of the vePENDLE system,”
Pendle said.
sPENDLE will feature a 14-day withdrawal period, offering greater flexibility for token holders.
Staking for sPENDLE is scheduled to go live this week.
vePENDLE locks will be paused later this month ahead of the transition.
Pendle said a snapshot of vePENDLE balances will be taken to support the switchover.
The new sPENDLE-based governance structure will fully roll out on the same day.
Data from DeFi Llama shows Pendle ranks as the 13th-largest DeFi protocol by total value locked.
Pendle’s total value locked currently stands at nearly $3.5 billion.
The protocol said vePENDLE created significant barriers due to long lock-up periods.
Users were previously unable to access funds until lock periods expired.
Pendle said sPENDLE can be withdrawn after a 14-day unwinding period or instantly for a fee.
The protocol cited vePENDLE’s lack of transferability as another major drawback.
sPENDLE will be integrated across multiple DeFi platforms to enable restaking and interoperability.
Pendle also said its previous governance model was too complex for most users.
“The weekly vote-to-earn system required a deep understanding of DeFi,”
Pendle said.
Pendle said the new system will require voting only on critical protocol proposals.
When no proposals are active, users will automatically remain eligible for rewards.
Pendle will use up to 80% of protocol revenue for PENDLE token buybacks and governance rewards.
At the time of reporting, Pendle price was $1.99.