Pendle Introduces New LP Incentive Model, PENDLE Token Emission Expected to Decrease by Around 30%
BlockBeats News, January 27, Pendle released a brand new LP Incentive Model. The Algorithmic Incentive Model (AIM) will officially launch on January 29, 00:00 UTC, after the end of the final vePENDLE voting period, whereby the pool will automatically receive emissions based on its quantifiable real contribution to Pendle and users. The highlights are as follows:
The new LP Incentive Model is expected to reduce the PENDLE token emission by about 30% while significantly increasing incentive efficiency;
Future emissions will be automatically allocated based on the LP's real market contribution to the protocol and users, with the weighting determined by TVL and fee generation;
LPs will receive higher TVL incentives to guide initial liquidity provision; as the pool matures, the incentive focus will gradually shift towards fee generation;
The protocol can amplify rewards through external incentives and provide co-incentives by Pendle, achieving a maximum of $1.40 in incentives for every $1 invested;
With the removal of the original ve-boost mechanism, LPs' APR is expected to increase overall, especially pronounced in high-volume pools.
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