Pendle is overhauling its long-standing vePENDLE lockup system by introducing sPENDLE, a liquid staking token designed to improve usability, flexibility, and capital efficiency across the protocol.

1️⃣ Key Changes

- sPENDLE replaces vePENDLE: Users can now stay liquid while earning protocol rewards, with a 14-day withdrawal period

- Rewards funded by PENDLE buybacks from the open market

- No multi-year lockups required to earn rewards or participate in governance.

- sPENDLE is freely transferable and usable across DeFi

2️⃣ Emissions & Governance Update

- Manual gauge voting will be phased out

- An algorithmic emissions model will replace it, expected to reduce token emissions by ~30%

- Existing vePENDLE holders will receive boosted sPENDLE during a two-year transition period

3️⃣ How It Worked vs. Now

- Previously, users deposited yield-bearing assets (e.g. stETH) and received vePENDLE, gaining voting power and bonus rewards while their principal continued earning base yield

- With sPENDLE, users still earn those rewards — but without locking capital long-term

- In simple terms: base yield remains intact, while previously locked value becomes liquid and reusable

4️⃣ Timeline & Stats

- sPENDLE staking goes live: January 20

- New vePENDLE locks paused: January 29 (snapshot taken to calculate conversion boosts)

- Total Value Locked: Over $3B as of Tuesday

5️⃣ Why It Matters

- This shift turns long-term locked positions into flexible, liquid capital, lowering the barrier to entry and making Pendle more attractive to a broader range of DeFi users and investors