Pendle Finance has announced a significant update to its staking model, leading to a notable 9% increase in its token price. This shift from long token locks to a more flexible liquid staking approach has captured the attention of investors, as the market anticipates potential price movements around key resistance levels. The publication demonstrates positive momentum in the developments.
Pendle Price Update
At the time of writing, Pendle's price stands at 207, having risen 9% in the last 24 hours. The token is currently consolidating below the 235 resistance level, with market analysts predicting either a breakout or a rejection in the near future. Despite a 29% decline over the past week, Pendle has shown resilience with a 9% increase over the last 30 days, indicating a steady recovery following last month's downturn.
Surge in Trading Activity
Trading activity has surged alongside the price increase, with Pendle's 24-hour spot volume climbing 34% to reach 63 million. This uptick suggests a renewed interest from investors, contrasting with previous low-liquidity conditions. The price rally coincides with Pendle's rollout of a comprehensive update to its staking and governance model, which aims to enhance user participation and capital efficiency.
Transition to sPENDLE
On January 20, Pendle announced the transition from vePENDLE to sPENDLE, a liquid staking token that eliminates multiyear lockups in favor of a 14-day withdrawal period, with an option for instant redemption at a fee. This new structure will utilize protocol revenue for PENDLE buybacks, benefiting eligible sPENDLE holders. Additionally, the existing manual gauge voting system will be replaced by an algorithmic emissions model, expected to reduce token emissions by approximately 30% while improving overall capital efficiency. Existing vePENDLE holders will also benefit from a boosted sPENDLE balance, with adjustments based on their remaining lock duration, as a snapshot is set for January 29 when new vePENDLE locks will be paused.
Aim for Improved Participation
These changes aim to resolve issues related to low participation and inefficiencies in the previous model.
On January 18, Arthur Hayes received a significant amount of ETHFI tokens from Anchorage Digital, marking a notable event in the Ethereum liquid staking landscape. This transaction contrasts with Pendle Finance's recent staking model update, highlighting ongoing developments in the DeFi sector. For more details, see read more.
