🔘Pendle Finance
Understanding Pendle Finance
Last updated
Understanding Pendle Finance
Last updated
Pendle Finance is a permissionless DeFi yield-trading protocol, currently built on Ethereum, Arbitrum & BNB Chain where users can execute various yield management strategies.
PENDLE is the governance token of Pendle Finance.
vePENDLE represents the locked version of PENDLE tokens. By locking their tokens as vePENDLE on Pendle Finance, PENDLE holders can access advantages within the platform. Pendle Finance offers a variety of staking durations, from as short as 7 days to as long as 2 years. Longer staking periods yield greater benefits, and holding more vePENDLE results in increased advantages.
🔹 Yield Boosting: One of vePENDLE's main utilities is to enable its holders to earn boosted yields for their active participation when providing liquidity on Pendle Finance. The boosted emissions are proportional to the staking period duration and the amount of PENDLE staked by users.
🔹 Governance Rights: vePENDLE is fundamental for Pendle Finance's governance system. vePENDLE holders can vote to allocate PENDLE emissions across different Pendle Finance pools. The voting weight is proportional to the staking period and the amount of PENDLE locked by users. More time staked, more voting weight.
🔹 Voting Incentives: vePENDLE holders have the potential to earn voting incentives from Pendle Finance partners. Different protocols might compensate users for providing voting support to their pools.
🔹 Active user engagement rewards: Holding vePENDLE on Pendle allows users to earn a part of the 3% fee charged on all yield generated by Yield Token (YT) holders. Additionally, vePENDLE holders can earn a portion of the yield generated by matured unredeemed PTs, providing an additional source of rewards for active user engagement.
Penpie has identified several areas where it can help provide a more efficient DeFi experience for users while supporting Pendle Finance's long-term development at the same time.
🔹 Liquidity providers cannot earn boosted yields for their active participation without locking PENDLE tokens.
🔹 Voters cannot earn considerable rewards for their active participation while their PENDLE tokens are locked.
🔹 PENDLE holders cannot earn rewards for their active participation without a required lock up.
