Decentralised Finance (DeFi) yield platform Pendle is going to swap its vePENDLE token for a new governance token, sPENDLE, with the aim of boosting adoption and fixing the drawbacks of the old model. The platform, which is currently holding the 13th position in the DeFi top chart with a total value locked of nearly $3.5 billion, is looking to enhance its tokenomics and offer a more user-friendly model.
vePENDLE’s Limitations
According to Pendle, the long lock-up periods of vePENDLE and the token’s incompatibility with other systems made it difficult for the token to gain more acceptance. Besides, the complex governance structure of the token also demanded users’ active engagement every week, thereby reducing the number of participants to only a handful.
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Enhanced Interoperability
sPENDLE will be connected to various DeFi platforms, thus allowing for use cases such as restaking and improving compatibility with other systems. The fresh token will also come with a reduced governance structure, thus eliminating the complexity of the former weekly vote-to-earn system. This change is meant to raise the level of involvement and bring a more democratic governance model.
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sPENDLE Launch Timeline
The sPENDLE token a liquid fee, and governance token that offers users the option to lock up and withdraw their assets with a 14-day withdrawal period, thus, with flexibility.
The transition to sPENDLE is planned to start this month. On Tuesday, sPENDLE staking will be launched and vePENDLE locks will be stopped by January 29. User vePENDLE balances will be snapshotted for the switchover, and the new governance structure will be completely implemented on the same day. sPENDLE, the redesigned governance token of Pendle, is set to overcome the drawbacks of vePENDLE and thus encourage adoption.
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