wLP: Streamlined Yield for Penpie and Pendle LPs
Wrap your LP -> Get wLP & Start Compounding -> Explore DeFi Opportunities with wLP
Penpie offers auto-compounding pools where Pendle and Penpie LPs can deposit their LP tokens to receive a wrapped LP token (wLP) that automatically compounds rewards.
Instead of manually claiming PENDLE emissions, rewards are harvested daily, converted into the underlying LP, and reinvested. This causes the value of Penpie’s wLP to steadily increase over time.
Key features of wrapped LP tokens:
Boosted yield – All wLP holders will benefit from enhanced yield thanks to Penpie’s vePENDLE holdings.
Seamless collateralization – Rewards are baked into the token, making wrapped LP tokens easy to integrate as collateral in lending protocols.
ERC-4626 compatible – Built on the tokenized vault standard for maximum DeFi composability.
Accurate pricing – Maintains a 1-to-1 relationship between the Penpie Receipt Token and the corresponding Pendle LP tokens, while leveraging Pendle’s oracle for reliable price feeds.
Automation with efficiency – Daily compounding is fully automated by the protocol, with a minimal 1% fee added to standard platform fees to cover gas costs and ensure smooth, sustainable operations.
Note:
Users can wrap their LPs at any time to unlock this “set-and-forget” wLP yield strategy, maximizing capital efficiency while keeping their positions ready for broader DeFi integrations.
Users can unwrap their wLP at any time to receive more underlying assets than initially deposited, thanks to the rewards accrued over time.
Official Audit Reports:
https://github.com/astrasecai/audit-reports/blob/main/AstraSec-AuditReport-Penpie-v1.12.pdf
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