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- Pendle’s new staking model reduces withdrawal times to 14 days.
- sPENDLE staking brings flexibility, rewards depend on governance participation.
- Existing users get loyalty boosts with multipliers up to 4x.
Pendle (PENDLE-0.24%) has announced a game-changing update to its platform, introducing a new liquid staking model that drastically reduces withdrawal times from years to just 14 days. This radical change is meant to make Pendle easier to use, with the goal of simplifying its tokenomics and becoming more accessible to participation, which increases the liquidity and the general user experience.
In the past, Pendle system was founded on vePENDLE that required the user to lock his/her tokens over a long duration in a non-transferable form. The vote-to-earn system which only happened on a weekly and the long lockup periods allowed concentration of rewards to a few active users.
Although it has created a protocol revenue of above $37 million in 2025, Pendle determined that at the vePENDLE model, only 20% of the entire supply of PENDLE was transacted, leading to poor user participation. Further, the company internally recorded that more than 60 percent of the markets were not profitable and this indicated the inefficiency of the old system.
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A Fresh Start with sPENDLE and Boosted Rewards
Pendle has come up with sPENDLE, a fungible and composable liquid staking token, to solve these problems. This new token enables the user to deploy their holdings to all integrations in the eligibility of DeFi, as well as actively receive rewards. The rewards will now be determined by participating in the governance and users must vote in Pendle Protocol Proposals to continue receiving rewards. In case the users do not vote, it will freeze their rewards after 14 days.
Pendle is promoting a loyalty increase to current vePENDLE customers in an effort to recognize them as long-term supporters. Beginning January 29, vePENDLE balances will be converted to a multiplied version of sPENDLE, which will have up to 4x multipliers depending on the remaining lock period. These increase will wear out with time and lapse after two years so that the long term supporters of the platform can also enjoy the transition.
The new staking model by Pfizer vigorously operational by Pfizer has already come into effect and a transition process officially will occur on January 29 when the new vePENDLE locks will be halted. Pendle is in the market at $1.94, a 2.4 percent nice upswing during the past 24 hours but still approximately 74 percent below its record high of $7.50 in April 2024. This significant change is likely to change the incentives of this platform and attract more users to join the ecosystem.
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