Pendle, the yield aggregation protocol, has recently gained significant attention. This article will provide a detailed introduction to the investment strategy of locking $Pendle to earn vePendle and participate in voting.
Contents:
Pendle’s Fund Pool APR Reaches 218%
Details and Benefits of Locking $Pendle for vePendle
Tutorial for Participation
Locking Process
Earning Voter APY
Receiving Bribe Rewards
While the overall cryptocurrency market is in a downturn, the interest rate market remains active. Pendle, benefiting from the Ethereum liquidity re-collateralization narrative and the popular stablecoin project Ethena, has been growing consistently this year, setting new highs in terms of trading volume, TVL, and token price.
According to Pendle’s own data, its Total Value Locked (TVL) has surpassed $4 billion, an increase of nearly 18 times compared to the $230 million at the beginning of the year. Additionally, Pendle’s accumulated trading volume has exceeded $15.8 billion, which has led to a significant increase in platform fee revenue.
Data from Token Terminal shows that Pendle’s fees surpassed $596,000 last week (4/22 ~ 4/28), the second-highest weekly revenue in history. The fee revenue on April 25 alone reached nearly $205,000. Compared to the statistics from Crypto Fees, Pendle’s fee revenue level ranks 7th, between MakerDAO and Kyberswap.
To earn a share of Pendle’s fee revenue, besides providing liquidity, locking $Pendle to obtain vePendle and participating in voting is an efficient method. The image below shows the top 6 fund pools with the highest APR for vePendle voters, ranging from 71.97% to 218.7%. These earnings are real and distributed in ETH at the end of each month.
The benefits of holding vePendle include:
1. A 3% fee on extracted YT interest + PT earnings that remain unredeemed. Distributed in ETH.
2. Voter APY: Earn 80% of the fee revenue from the voted fund pool. Distributed in ETH.
3. Bribes from third-party protocols for voting rewards.
4. LP Reward Boost: Part of the LP reward is Pendle’s reward, which can be boosted up to 2.5 times. If the pool has other boostable yields, it can be boosted up to 2.5 times, depending on the amount of vePendle held.
When locking $Pendle, users will see two types of earnings for vePendle. One is the vePendle Base APY, which reflects the first point of earnings. This is then added to the Voter APY earnings from voting for the pool with the highest APR, resulting in the vePendle Max APY.
To lock $Pendle, increase the lock, or extend the lock period, users can visit the Pendle Locking page. Similarly, on the Pendle Voting page, users can select pools with high Voter APY for maximum earnings. The Voter APY is distributed at the end of each month in $ETH, which can be claimed on the user’s data panel (Base APY can also be claimed on the same page).
Please note that the displayed APY is based on the past 7-day performance and may not reflect future earnings. Users can visit the website to view all past performances. Users can also visit the Equilibria or Penpie websites to check the weekly voting bribe rewards and claim rewards for pools that have received bribes.
This concludes the tutorial on earning Pendle’s fee revenue and the rewards from holding vePendle. Pendle Chinese Community Ambassador ViNc reminds users that if they do not change their voting options, they do not need to vote repeatedly every week. Additionally, these operations can only be conducted on the Ethereum mainnet, and users should evaluate gas fees if their funds are small.
Related Reports:
PENDLE Analysis: Ethereum Liquidity Recollateralization Remains Hot, Ethena (ENA) Plays a Role?
Understanding the Pendle Yield Aggregation Protocol: Connecting to the RWA Market and Multi-Chain Expansion
Binance Announces Investment in Pendle Finance, $PENDLE Surges by 12%
Profit from Market Volatility! Analyzing the Pendle YT Arbitrage Opportunity