Pendle Overhauls Tokenomics Structure With New sPENDLE Token

Pendle, a DeFi protocol ranking as the 13th-largest by total value locked at almost $3.5 billion, is phasing out its vePENDLE governance token in favor of a new liquid staking token called sPENDLE.

The transition aims to address limitations in the existing system and provide users with more flexibility, according to Pendle. The team stated that the design of the old system was intended to drive long-term commitment to the protocol, but it required long lock-up periods during which users could not access their funds until set time periods concluded.

sPENDLE staking will go live on Tuesday, while vePENDLE locks will be paused on January 29. A snapshot of user vePENDLE balances will be taken to aid with the switchover, and the new governance structure under sPENDLE will fully roll out at that time.