Pendle Replaces vePENDLE With sPENDLE as $3.5B DeFi Platform Targets Growth
Pendle, one of the leading Decentralised Finance (DeFi) protocols specialising in yield trading, is about to roll out a major revamp...
Quick overview
- Pendle is revamping its governance system by replacing the vePENDLE token with a new liquid staking and governance asset called sPENDLE.
- The new sPENDLE token introduces immediate liquidity options, transferability, and a more user-friendly governance structure.
- Pendle aims to simplify participation in governance while ensuring rewards for long-term users and those actively engaging with the protocol.
- The transition to sPENDLE is set to begin this week, with a snapshot of existing balances to facilitate a smooth changeover.
Pendle, one of the leading Decentralised Finance (DeFi) protocols specialising in yield trading, is about to roll out a major revamp of its governance system to simplify it and make it easier for people to get on board. As of this month, the protocol will be phasing out vePENDLE, its trusty old vote-escrow governance token that’s been with it for years, and replacing it with sPENDLE – a shiny new liquid staking and governance asset.
This move comes after Pendle did some soul-searching and concluded that its design – while brilliant at getting people to stick around for the long haul – was actually a major turn-off for would-be participants. The fact that you’d need to lock up your cash for ages, the voting system was a nightmare, and you couldn’t even transfer the token if you wanted to. This all added up to a scenario in which only the most hardcore and technically savvy users bothered to get involved.
According to the numbers over at DeFiLlama, Pendle is currently the 13th largest DeFi Protocol in terms of the amount of money locked up (TVL), with nearly $3.5 billion in the bag. This shows just how big the gap is between how well the protocol is performing and how few people actually get to participate in governance.
How sPENDLEs Going to Change Things for Token Holders
Pendle describes sPENDLE as a liquid fee and governance token designed to address the major flaws of vePENDLE. Unlike its predecessors, SPENDLE introduces welcome flexibility, while still ensuring those who stick around for the long haul get a good reward.
Pendle is making a big shift, replacing vePENDLE with sPENDLE to bring more flexibility and accessibility to its rewards system.
This move aims to simplify DeFi participation and spark greater adoption from new users. pic.twitter.com/wGetG5Ehhy
— Cryptopolitan (@CPOfficialtx) January 20, 2026
Some of the key upgrades include:
- Immediate liquidity options with a mandatory 14-day withdrawal period
- If you need your cash right away, you can get it for a 5% fee.
- It is now transferable, making it easier to use with DeFi platforms.
- It’s also backwards compatible with restaking and other stuff
You can expect to start staking for sPENDLE this week, while new vePENDLE locks will be put on ice from January 29th. Pendle plans to take a snapshot of the existing Pendle balances to make the transition as painless as possible during the launch of the new governance framework.
Pendle said the new system is designed to get rid of the “all-or-nothing” deal that put people off, while still ensuring those who stick around for the long haul get a decent reward.
Governance and Rewards Made Simpler
But it’s not just about making SPENDLE more user-friendly. Pendle are also looking to give governance a bit of a makeover. Under the old system, vePENDLE holders had to constantly vote in weekly cycles to get rewarded, which meant being on the ball 24/7 and having the latest market trends at their fingertips.
Although Pendle earned over $37 million in revenue last year, most rewards went to a small group of experts. The new system will let holders vote on key proposals to qualify for rewards. If no proposals are active, holders will still receive rewards. A bit of incentive comes in the form of Pendle buying back up to 80% of its protocol revenue in PENDLE tokens and redistributing that value straight to the people who actually participate in governance. By doing this, Pendle ensures that people who actually use the protocol, rather than just those who vote frequently, get rewarded.
By movinBy moving to SPENDLE, Pendle aims to balance user-friendliness with decentralisation, efficiency, and competitiveness in the DeFi space.
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