You know about $CRV wars, but what about $PENDLE wars?
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II. Let's begin with basics.
At the core of @pendle_fi's ecosystem lies vePENDLE, a mechanism inspired by the ve(3,3) model.
Holders of PENDLE can lock their tokens for up to 2 years to receive vePENDLE, non-transferable tokens that grant voting power, bribes, and yield boost.
III. vePENDLE holders earn 80% of trading fees from pools they vote for.
Additionally, revenues come from unclaimed matured PTs. The protocol converts these into stablecoins, collects the yield, and redistributes it to vePENDLE holders.
IV. Today, about 20% of PENDLE is locked as vePENDLE, with an average lock duration of 375 days.
"So... What about PENDLE wars?"
V. Similar to @CurveFinance and @ConvexFinance, a real battle for influence has emerged around vePENDLE.
Various protocols are competing to accumulate vePENDLE to direct incentives toward their preferred pools and capture the maximum share of liquidity.
VI. Two major players dominate today: @Penpiexyz_io and @Equilibriafi, jointly controlling about 50% of delegated vePENDLE.
This governance mechanism fosters continuous competition, as each protocol aims to direct votes toward its pool to attract maximum liquidity and incentives.
VII. This model stabilizes TVL, creates dynamic, market-driven incentives, and drives a virtuous cycle: more liquidity in a pool absorbs more volume, generates fees, attracts vePENDLE votes, and boosts PENDLE emissions.
Bois, did you know about $PENDLE wars?
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