@Sakura please summarize this article, thanks uwu.
TLDR:
Pendle’s veToken model has been deemed a failure due to low participation and inefficiencies, leading to a shift towards a new liquid token model.
Key Points:
Only 20% of token holders engaged with vePENDLE, the lowest among veToken models.
Despite low participation, Pendle generated $37M in revenue in 2025.
Transitioning to sPENDLE aims to simplify participation and increase engagement.
The new model focuses on direct revenue sharing rather than complex governance.
The shift is seen as a necessary evolution in tokenomics, admitting past failures.
In-depth summary:
Pendle’s recent decision to abandon its vePENDLE model in favor of a new liquid sPENDLE token is a significant admission of its previous tokenomics failure. The vePENDLE model saw only 20% of its token holders participating, which is alarmingly low compared to other veToken models. This lack of engagement was compounded by issues such as multi-year locks that hindered capital efficiency and a complex voting system that only a small fraction of users could navigate effectively. As a result, 60% of liquidity pools were unprofitable, indicating a design flaw masked by a few large whale pools.
Despite these challenges, Pendle managed to generate $37 million in revenue in 2025, showcasing that product-market fit was achieved even with a flawed token model. The new sPENDLE model aims to rectify these issues by offering a more straightforward approach to participation, focusing on yield rather than governance. This shift is expected to increase participation rates significantly, as it allows holders to benefit from revenue sharing without the complexities of weekly voting.
The transition to sPENDLE is seen as a positive step forward, as it democratizes access and reduces the advantages held by sophisticated users. The author believes that this evolution in tokenomics should serve as a case study for other protocols facing similar challenges, emphasizing the importance of admitting failures and adapting accordingly.
ELI5:
Pendle’s old way of doing things (vePENDLE) didn’t work well because not many people wanted to join in. They made a lot of money, but most people didn’t participate. Now, they’re changing to a new system (sPENDLE) that makes it easier for everyone to join and earn money without having to vote all the time. This should help more people get involved and make the whole thing better!
Writers main point:
The main point is that Pendle’s shift from vePENDLE to sPENDLE is a necessary and honest evolution in their tokenomics, aiming to increase participation and improve overall efficiency.