🐧The mPENDLE Liquidity Pool on Pendle Finance

Long - Short mPENDLE yield!

The mPENDLE liquidity pool on Pendle Finance allows PENDLE holders to convert their tokens into mPENDLE and trade the yield of mPENDLE tokens. Users can take long or short positions by buying or selling Yield Tokens. The mPENDLE pool brings multiple benefits to Penpie and we anticipate greater adoption of mPENDLE by Pendle liquidity providers.

The mPENDLE pool enables mPENDLE users to trade Principal and Yield Tokens, creating opportunities for increased revenue. The listing could boost mPENDLE demand and conversions, further stabilizing mPENDLE and enhancing benefits on Penpie through higher APYs.

mPENDLE Pool Incentives

Pendle offers yield incentives to liquidity providers based on vePENDLE holder votes.

To motivate vePENDLE holders to support the mPENDLE pool, Penpie will allocate its vePENDLE revenue share from Pendle towards PNP buybacks. These will be distributed as bribe rewards for the mPENDLE pool.

Penpie also listed a new mPENDLE pool allowing enhanced yields for mPENDLE holders without needing direct vePENDLE locks.

Benefits of the mPENDLE Liquidity Pool

The pool offers attractive features, especially regarding its APR composition:

- SY Yield from mPENDLE staking rewards

- PT Fixed Yield from PT discounts

- LP pool swap fees

- $PENDLE emissions

A key feature is the automatic buyback and reinvestment mechanism. When SY Yield generates $PENDLE, the contract seamlessly converts through Penpie's Smart PENDLE converter. If the mPENDLE/PENDLE peg falls below 95%, the Smart Converter purchases mPENDLE on Wombat Exchange using the PENDLE, reinvesting into the pool.

This automated process creates continuous buy pressure for mPENDLE while supporting the peg stability.

At discounts below 5%, tokens directly convert to mPENDLE 1:1 using the Smart Converter. This strategic conversion expands Penpie’s vePENDLE holdings, increasing $PENDLE rewards and solidifying Penpie’s position in the ecosystem.