Launched on June 5, 2023, Penpie serves as an advanced platform bolstering the sustainable development of Pendle Finance, with an emphasis on enriching opportunities for DeFi enthusiasts. Central to its operations is the accumulation of PENDLE, Pendle Finance’s governance token. By locking these accumulated PENDLE as vePENDLE within Pendle Finance, Penpie not only secures governance privileges but also reaps yield advantages, which are in turn distributed among its user base.
How does Penpie benefits users?
- Passive income for PENDLE holders: Users can convert their PENDLE tokens into mPENDLE and earn a share of Penpie’s revenue without committing to any lock-up period.
- Boosted rewards for liquidity providers: Penpie allows users to maximize their potential revenue without needing to lock their PENDLE as vePENDLE individually. Users can leverage Penpie’s vePENDLE balance to optimize their rewards.
- Cost-effective governance power for voters on Pendle Finance: Thanks to the large amount of vePENDLE accumulated by Penpie, users can efficiently participate in Pendle Finance’s governance through the PNP token.
How is this possible?
Penpie has locked over 8.5 million PENDLE as vePENDLE within Pendle Finance. Whenever a user converts PENDLE tokens to mPENDLE on Penpie, the platform locks the converted amount as vePENDLE on Pendle Finance. In exchange for their PENDLE, users receive mPENDLE tokens which can be staked to earn substantial rewards. Meanwhile, by locking PENDLE, Penpie gains both governance power and increased yield benefits. Importantly, Penpie’s vePENDLE holdings enable users to receive boosted yields on the platform without needing to lock their own PENDLE. Also, Penpie shares its heightened APR % with liquidity providers on its platform. The PNP token has access to control the governance power that Penpie accrues from locking PENDLE on Pendle Finance. Currently, Penpie is the top vePENDLE holder across DeFi; it holds over 28% of the total vePENDLE on Pendle Finance.
PENDLE converters get mPENDLE tokens that can be staked to earn high rewards. Over 500 PENDLE stakers have deposited their mPENDLE on Penpie, and currently, there are almost 1,000 mPENDLE token holders.
Circulating mPENDLE supply
mPENDLE stakers
mPENDLE holders
Cost-Effective Voting Power
PNP can be locked as Vote-Locked PNP on Penpie to participate in Pendle Finance’s governance and earn passive income simultaneously. PENDLE can be locked for varying durations within Pendle Finance, ranging from 7 days to 2 years. The longer the PENDLE is locked, the more vePENDLE users receive, which in turn increases their voting power. Each vePENDLE possesses an equal amount of voting power. Penpie has committed to a 2-year lock for every converted PENDLE on Pendle Finance, ensuring that it wields the maximum possible voting power for each locked PENDLE.
The voting power accumulated by Penpie on Pendle Finance through vePENDLE is controlled by Vote-Locked PNP holders who choose to vote. vlPNP in the cooldown period cannot be used for voting.
Currently it has locked over 8,500,000 PENDLE, entitling the platform to voting power. This voting power is shared among vlPNP holders who choose to vote. Let’s assume there are a total of 1,500,000 Vote-Locked PNP tokens. Out of this total, 100,000 vlPNP are in the “Cool Down” period and are not eligible to vote. This leaves 1,400,000 vlPNP that can actively participate in voting, sharing the voting power of the +8,500,000 vePENDLE accumulated by Penpie.
8,500,000 vePENDLE ÷ +1,400,000 vlPNP = 5.80
This implies that each vlPNP represents 5.8 vePENDLE in voting power. For 1 vlPNP, voters on Pendle Finance can effectively get almost the voting power of 6 vePENDLE.
- 1 vePENDLE = 1 PENDLE price: 0.61c
- 1 vlPNP = 1 PNP price: 0.98c
- 1 vlPNP = 5.80 vePENDLE (Voting power)
Investing $1 in $PENDLE provides 1.63 vePENDLE voting power, whereas $1 in $PNP offers 5.8 vePENDLE voting power. This means $PNP is 3.55 times more efficient than $PENDLE in terms of voting power.
This means that Pendle Finance voters can acquire 3.55 times more voting power for the same investment amount through PNP.
Benefits for Vote-Locked PNP Holders:
- Greater voting power compared to vePENDLE holders (cost-effectively achieve +3.5 times more voting power for the same investment value)
- Passive income
- Reduced lock-up period
TVL
Users who deposit their assets on Penpie can automatically optimize their passive income. In Pendle Finance, liquidity providers traditionally need to lock their PENDLE tokens as vePENDLE on the platform to access boosted yields. However, not all users want to lock their assets due to the risk of missing out on other opportunities.
Penpie leverages the vetokenomics of Pendle Finance, allowing liquidity providers to benefit from boosted APY without the need to lock in any vePENDLE tokens. This approach allows users to participate in the rewards without incurring fees or disadvantages associated with token locking. Currently, Penpie’s TVL surpasses $55 million, accounting for 30% of Pendle Finance’s TVL. This significant presence underscores the trust and confidence that users have in Penpie’s capabilities within the broader Pendle Finance ecosystem.
We express our deepest gratitude to our dedicated user base and the broader Pendle Finance community. Your trust and support have been paramount in achieving these milestones. With the foundation we’ve built, Penpie is poised for even greater advancements in the DeFi space. Together, let’s continue to pioneer new horizons and reach greater heights.
About Penpie: Penpie is a Next-Generation DeFi SubDAO created by Magpie XYZ to provide Pendle Finance users with yield and veTokenomics boosting services. Integrated with Pendle Finance, Penpie focuses on locking PENDLE tokens to obtain governance rights and enhanced yield benefits within Pendle Finance. Penpie revolutionizes the way users can maximize their returns on investments and monetize their governance power.
Website / Twitter / Discord / Telegram / Docs / Link3 / Medium / WatchPug Audit / Zokyo Audit
