📍Introduction

Penpie is a multi-chain DeFi product providing Yield & veTokenomics boosting services for Pendle Finance

Penpie

Penpie is a DeFi platform providing Yield enhancement services for Pendle users, built by Magpie upon the foundation of Pendle Finance.

Pendle Finance

Pendle Finance is a permissionless DeFi yield-trading protocol built on Ethereum, Arbitrum, BNB Chain and Optimism that offers users the ability to manage their yield. The platform implements the veToken model for its governance token PENDLE. PENDLE holders can lock their tokens as vePENDLE on Pendle Finance to own governance rights, get active user engagement rewards and earn higher APR% as liquidity providers in the protocol. In order to get the most benefits of vePENDLE, users must lock their PENDLE for 2 years.

How does Pendle Finance work?

Pendle converts yield-bearing tokens into standardized yield tokens (SY) and separates them into principal tokens (PT) and yield tokens (YT). These tokens can be traded using a custom V2 AMM. This integration brings the traditional finance interest derivative market, valued at over $400 trillion in notional value, into the DeFi space, making it accessible to everyone. PTs act like zero-coupon bonds, while YTs resemble coupon payments. Pendle unlocks the full potential of yield in DeFi by allowing users to execute advanced yield strategies, such as purchasing assets at a discount, securing fixed yield for low-risk, stable growth, going long on yield, or employing a mix of these strategies.

Penpie: Empowering Pendle Finance

Penpie brings a solution that supports Pendle Finance to maximize its long term value. The protocol enables PENDLE holders to earn rewards for their active user engagement, provides Pendle Finance voters with cost-effective voting power, and allows liquidity providers to gain increased APR% without needing to lock PENDLE tokens as vePENDLE.

Penpie offers PENDLE holders the opportunity to earn substantial yields by converting their governance tokens (PENDLE) into mPENDLE. Users can stake mPENDLE via Penpie to earn enhanced active user engagement rewards on the platform.

When users convert their PENDLE into mPENDLE, Penpie automatically locks the converted PENDLE as vePENDLE within Pendle Finance. This mechanism enables PENDLE holders to earn greater rewards through mPENDLE, while also granting Penpie governance rights and an increased APR% as a liquidity provider on Pendle Finance.

Thanks to Penpie's vePENDLE holdings, liquidity providers can deposit their assets on the platform and earn boosted PENDLE without having to lock any PENDLE as vePENDLE by themselves.

The voting power accumulated by Penpie through its vePENDLE holdings is shared among vlPNP holders, allowing them to participate in Pendle Finance's governance cost-effectively. PNP is the governance token of Penpie, and it can be locked as vlPNP to access its benefits. Vote-Locked PNP holders can earn active user engagement rewards from the platform and influence Pendle Finance's governance efficiently while simultaneously maximizing their rewards. Users must wait 60 days for their locked PNP to be fully unlocked.

How does Penpie benefit Pendle Finance?

• Boost rewards for PENDLE holders - PENDLE holders have the option to convert their tokens into mPENDLE, allowing them to receive active user engagement rewards.

• Expanding a diverse user base - Risk-averse liquidity providers can achieve higher yields without the need of locking PENDLE and holding vePENDLE on their own. The vePENDLE holdings of Penpie allows the platform to provide depositors with active engagement rewards.

• Reducing the voting barrier - Penpie provides a cost-effective method for acquiring voting rights on Pendle Finance, facilitated by the vePENDLE accrued by the platform. Users can purchase PNP tokens and lock them on Penpie as vlPNP. This allows users to gain control over the vePENDLE accrued by Penpie, thereby having the right to influenence the governance of Pendle Finance. Also, this approach allows for maximized active user engagement rewards with shorter lock-up periods.