Pendle Finance Meets Magpie: “Penpie” A Game-Changing DeFi Integration

Magpie is a multi-chain DeFi platform that offers yield and veTokenomics enhancement services. Incubated by Wombat Exchange, Magpie currently manages around 30% of Wombat’s governance power, helping the protocol optimize its DeFi services across multiple blockchains. We appreciate the dedication and support of the Wombat team as we strive to deliver the best benefits for users around the world.

As we continue to develop Magpie yield and veTokenomics boosting services, we are thrilled to announce the expansion of our product offerings with the integration of Pendle Finance. As a DeFi yield-trading protocol, Pendle Finance aligns seamlessly with Magpie’s mission to amplify yield and veTokenomics model. This collaboration brings forth a new product from Magpie. Introducing Penpie: A product designed specifically to foster the growth of Pendle Finance and its surrounding ecosystem. With Penpie’s incorporation into Pendle Finance, Magpie broadens its reach and augments the advantages it delivers to DeFi users. In this article, we’ll dive into the details of how Penpie works and the benefits it offers to Pendle Finance and its users.

Pendle Finance

Pendle Finance is a permissionless DeFi yield-trading protocol built on Ethereum & Arbitrum, that offers users the ability to manage their yield. The platform converts yield-bearing tokens into standardized yield tokens (SY) and separates them into principal tokens (PT) and yield tokens (YT). These tokens can be traded using a custom V2 AMM. This integration brings the traditional finance interest derivative market, valued at over $400 trillion in notional value, into the DeFi space, making it accessible to everyone. PTs act like zero-coupon bonds, while YTs resemble coupon payments. Pendle unlocks the full potential of yield in DeFi by allowing users to execute advanced yield strategies, such as purchasing assets at a discount, securing fixed yield for low-risk, stable growth, going long on yield, or employing a mix of these strategies.

Pendle Finance implements the veToken model for its governance token PENDLE. PENDLE holders can lock their tokens as vePENDLE on Pendle Finance to own governance rights, get revenue share and earn higher APR% as liquidity providers in the protocol. In order to get the most benefits of vePENDLE, users must lock their PENDLE for 2 years.

Penpie: Empowering Pendle Finance

Penpie allows PENDLE holders to earn increased PENDLE rewards as passive income, offers Pendle Finance voters cost-effective voting power, and enables liquidity providers to get increased APR% without the need of locking PENDLE tokens as vePENDLE.

Penpie offers PENDLE holders the opportunity to earn substantial rewards by converting their governance tokens (PENDLE) into mPENDLE. Users can stake mPENDLE on Penpie to earn an enhanced revenue share from the platform in the form of PENDLE.

When users convert their PENDLE into mPENDLE, Penpie automatically locks the converted PENDLE as vePENDLE within Pendle Finance. This mechanism enables PENDLE holders to earn greater rewards through mPENDLE, while also granting Penpie governance rights and an increased APR% as a liquidity provider on Pendle Finance.

Thanks to Penpie’s vePENDLE holdings, liquidity providers can deposit their assets on the platform and earn increased PENDLE rewards without having to lock any PENDLE as vePENDLE by themselves.

The voting power accumulated by Penpie through its vePENDLE holdings is shared among vlPNP holders, allowing them to participate in Pendle Finance’s governance cost-effectively. PNP is the governance token of Penpie, and it can be locked as vlPNP to access its benefits. Vote-Locked PNP holders can earn a revenue share from the platform and influence Pendle Finance’s governance efficiently while simultaneously maximizing their rewards. Users must wait 60 days for their vlPNP to be fully unlocked to PNP.

How does Penpie benefit Pendle Finance?

• Boost income for PENDLE holders — PENDLE holders have the option to convert their tokens into mPENDLE, allowing them to receive a share of the revenue generated by Penpie in the form of PENDLE.
• Expanding a diverse user base — Risk-averse liquidity providers can achieve higher yields without the need of locking PENDLE and holding vePENDLE on their own. The vePENDLE holdings of Penpie allows the platform to provide depositors with boosted passive income.
• Reducing the voting barrier — Penpie offers an affordable approach to obtaining voting rights on Pendle Finance thanks to the vePENDLE accumulated by the platform. Users can acquire PNP tokens and lock them on Penpie as vlPNP to cost-effectively control the vePENDLE accumulated by Penpie and influence the governance of Pendle finance while earning maximized revenue share with shorther lock up period.

PNP Token

PNP is the governance and revenue-sharing token of Penpie. Users can lock their PNP tokens to receive vlPNP at a 1:1 ratio. Vote-Locked PNP (vlPNP) enables PNP holders to earn passive income and share governance benefits on the platform. The voting power from the accumulated vePENDLE is distributed among vlPNP holders, enabling them to participate in Pendle Finance’s governance.

PNP Token

Benefits of vlPNP

• Platform Governance: vlPNP allows users to participate in Penpie’s governance, empowering them to take part in the platform’s development and decision-making.
• Governance Power in Pendle Finance: vlPNP holders can participate in Pendle Finance’s governance. By controlling the vePENDLE accumulated by Penpie, locked PNP holders have the right to vote on Pendle Finance’s governance.
• Revenue Sharing: Holding vlPNP, obtained by locking PNP, enables passive income via revenue sharing. A part of the platform’s revenue is distributed to vlPNP holders, incentivizing long-term investment.
• Potential Incentives: vlPNP holders may earn incentives from Pendle Finance’s partners seeking governance votes to receive a boost in PENDLE rewards.

Upcoming Pendle Rush

Great news for PENDLE token holders! Pendle Rush is just around the corner! This exclusive program is specifically designed to reward users for depositing their PENDLE tokens, by distributing 2% of PNP’s total supply. Stay tuned for more updates on the launch of Pendle Rush and get ready to earn exciting rewards for your PENDLE deposits!

The integration of Magpie and Pendle Finance through Penpie supports the development of Pendle Finance by increasing user engagement, incentivizing long-term token holding, and strengthening the overall ecosystem. As Magpie continues to grow and expand its services, our integration with Pendle Finance marks an exciting new chapter in our journey. We look forward to providing our users with more increased passive income opportunities, and a more interconnected DeFi ecosystem as we work together with Pendle Finance to innovate and push the boundaries of decentralized finance.