Protocol fees and other rewards earned by vePENDLE holders last year
Governance utility derived from managing PENDLE emissions
PENDLE lock-up stats
PENDLE by itself is bereft of utility and must necessarily be locked in order to acquire utility. Locking is done for a fixed time (i.e., not withdrawable ahead of time) of up to two years, with the conversion rate to vePENDLE depending linearly on the remaining locktime. This exposes them to a risk of runaway depreciation in the meantime.
[7] = ƒ(stake_amount, price_at_stake)
stake_amount — number of tokens stakedprice_at_stake — price of one token at staking timeMerely holding vePENDLE entitles the user to reception of yield derived from YT fees, which are comprised of 5%-level fees on all yield of all extant YT tokens and the entire yield of their SY wrappers (provided that the associated PT is mature and unredeemed).
[21] = ƒ([7], YT_fees, SY_fees, fees_to_treasury)
YT_fees — volume of YT yield-derived feesSY_fees — volume of SY yield-derived feesfees_to_treasury — portion of fees redirected to the protocol treasury (0% at the time of writing)Holding vePENDLE entitles the user to vote for pool allocation of epochal PENDLE incentive emissions.
[81] = binary
The governance value originates from the ability of vePENDLE voters to influence the distribution of the weekly PENDLE incentive emissions (the emission rates are updated weekly by snapshotting the mometary vote distribution). This distribution is used to reward pools, and through them, the LPs.
Note that the pool incentives are capped from above based on its swap fee generation share among other Pendle pools.
[3] = ƒ([81], user_vote_allocation, user_strategy_representation)
Voting for a pool entitles the vePENDLE holder to a pro rata share of a portion (currently 80%) of the swap fees collected by the pool.
[22] = ƒ([81], pool_vote_share, pool_fees, fee_to_user)
pool_vote_share — share of the user's votes among all votes for a given poolpool_fees — volume of pool swap feesfee_to_user — portion of swap fees accorded to the pool votersTo receive an LP boost due to vePENDLE, a user must be a liquidity provider in a Pendle pool.
[82] = Binary
LPs of Pendle who also hold vePENDLE (no voting is required) are eligible for a boost to the share of PENDLE incentives emission and of LP rewards sourced from swap fees, protocol incentives, etc.
The boost level is variable; in order to receive the maximal 250% boost, the user has to have as much vePENDLE (relatively speaking) as he has liquidity in the pool (also relatively speaking).
[22] = ƒ([7], pool_share, pool_rewards, pool_incentives, vePENDLE_share)
pool_share — user's LP share in the poolpool_rewards — pool LP rewards volumepool_incentives — PENDLE incentives due to a pool as a result of voting in a given epochvePENDLE_share — user's share of vePENDLE supply