Pendle Replaces vePENDLE with sPENDLE in Governance Revamp
Pendle will begin retiring its vePENDLE governance token this month and migrate to a new liquid governance and fee token, sPENDLE, in a move the protocol says is intended to increase adoption. The change was announced on Monday via X.
According to Pendle, sPENDLE is a liquid token with a 14-day withdrawal period. sPENDLE staking is scheduled to go live on Tuesday, while vePENDLE locks will be paused on Jan. 29, when a snapshot of user vePENDLE balances will be taken to support the transition. On the same day, the new sPENDLE-based governance framework is set to fully launch. Source: Pendle
The protocol said vePENDLE’s long lock-up requirements, complexity, and limited interoperability had become obstacles for broader participation, despite overall growth in the platform.
To address these issues, sPENDLE can be withdrawn at any time after a 14-day unwind period or exited instantly for a 5% fee. The token will be transferable and integrated with other decentralized finance platforms, enabling use cases such as restaking.
Pendle also plans to streamline governance. The previous weekly vote-to-earn mechanism required ongoing involvement and a deep understanding of market dynamics, which the team said led to rewards concentrating among a small segment of vePENDLE holders, even as the protocol generated over $37M in 2025. Under the new model, holders will only need to participate in votes on critical Pendle Protocol Proposals (PPP) to remain eligible for governance rewards; when there are no PPPs, eligibility will continue. Pendle intends to conduct PENDLE buybacks using up to 80% of protocol revenue for distribution as governance rewards.
Data from DeFi Llama places Pendle as the 13th-largest DeFi platform by total value locked, at almost $3.5 billion.
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