Pendle to replace vePENDLE with liquid sPENDLE governance token

Decentralized Finance yield platform Pendle will replace its vePENDLE token as the protocol’s primary governance and reward token with a new liquid staking token called sPENDLE, the team announced on X on Monday. Pendle said sPENDLE is a liquid fee and governance token with a 14-day withdrawal period and that holders can withdraw instantly for a 5% fee.

"We’re excited to introduce sPENDLE, the next evolution of Pendle tokenomics," the project wrote. The team said sPENDLE staking will go live on Tuesday, vePENDLE locks will be paused on Jan. 29, a snapshot of vePENDLE balances will be taken to aid the switchover, and the new governance structure under sPENDLE will fully roll out the same day.

Pendle said vePENDLE imposed "significant barriers" to broader adoption, citing long lock-up times that prevented users from accessing funds until a set period ended and the token’s non-transferability, which hindered interoperability with other DeFi platforms. The project also criticised the complexity of its weekly vote-to-earn system, saying it "required a deep understanding of DeFi and market dynamics" and that "Despite generating over $37M in 2025, the complex voting mechanics meant that rewards concentrated among vePENDLE holders".

To address those issues, Pendle plans sPENDLE integrations with other DeFi platforms to enable uses such as restaking and is simplifying governance so holders only need to vote on "critical" Pendle Protocol Proposals to remain eligible for rewards.

Key Topics

Crypto, Pendle, Spendle, Vependle, Defi, Liquid Staking