Pendle Shifts to Liquid Staking Model, Reducing Withdrawal Time to 14 Days
- Pendle introduces liquid staking, reducing withdrawal time to 14 days.
- sPENDLE replaces vePENDLE, simplifying participation and enhancing liquidity for users.
- Loyalty boosts for vePENDLE holders with up to 4x multipliers.
Pendle (PENDLE-0.24%) has introduced a major update to its platform by replacing its traditional vePENDLE lockup system with a liquid staking alternative. This new model significantly shortens the withdrawal time from years to just 14 days. The change is designed to enhance the platform’s liquidity and make participation easier for users.
Pendle’s previous system, which relied on non-transferable vePENDLE locks and a weekly vote-to-earn process, created barriers to entry for many users. While Pendle generated over $37 million in protocol revenue in 2025, it noted that the rewards were heavily concentrated among a small group of users.
The complex mechanics of the voting system and the long lock periods led to low participation, with only 20% of the total PENDLE supply being engaged under the vePENDLE model. Additionally, internal data revealed that over 60% of markets were unprofitable despite high fee efficiency.
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Transition to sPENDLE and Boosted Rewards
The introduction of sPENDLE aims to address these issues by providing a more accessible and flexible staking mechanism. Unlike the previous model, sPENDLE is fungible and composable, allowing users to deploy it across eligible DeFi integrations while remaining active for reward distribution. To ensure continued participation, rewards are contingent on governance involvement.
If sPENDLE holders fail to vote during an active Pendle Protocol Proposal, their rewards will be paused for 14 days.
As part of this transition, Pendle is also offering a loyalty boost to existing vePENDLE holders. Starting on January 29, vePENDLE balances will be converted to a boosted form of sPENDLE, with multipliers of up to 4x based on the remaining lock duration. The boost will gradually decay over the lock period and expire after two years.
With the shift to sPENDLE already underway, new vePENDLE locks will be paused on January 29, marking the official start of Pendle’s new incentive structure. Currently, Pendle’s native token is priced at $1.94, reflecting a 2.4% increase in the last 24 hours, though it remains significantly lower than its all-time high of $7.50 reached in April 2024.
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The post Pendle Shifts to Liquid Staking Model, Reducing Withdrawal Time to 14 Days appeared first on 36Crypto.
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