Pendle Replaces vePENDLE With Flexible New Token sPENDLE

Crypto News DeFi

Pendle Retires vePENDLE, Launches Flexible New Token sPENDLE

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 20, 2026

Key Takeaways

Pendle replaces vePENDLE with sPENDLE, which offers flexible staking, easier withdrawals, and simpler rewards;
sPENDLE launches January 20 with auto-reward distribution and fewer voting duties for users;
vePENDLE holders get up to 4 times virtual sPENDLE loyalty bonuses when locks are captured on January 29.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Pendle Retires vePENDLE, Launches Flexible New Token sPENDLE

BITDEGREE IN YOUR SOCIAL FEED

The DeFi yield protocol Pendle is removing its governance token, vePENDLE, and introducing a new token, sPENDLE.

According to an announcement posted on X, staking for sPENDLE begins on January 20. The old token had strict locking rules and could not be used on other services.

With sPENDLE, users can either wait 2 weeks for withdrawals or unlock instantly for a 5% fee. Support for locking vePENDLE will end on January 29.

What is a Crypto Bull Run? (Animated Explainer + Prediction)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

The project explained that vePENDLE also required holders to make votes every week, which deterred many users who found the approach too complex.

Currently, the protocol will allocate up to 80% of its income to purchase PENDLE and offer rewards to sPENDLE owners through this easier-to-understand arrangement.

Once users have sPENDLE or put it into supported services, they will receive rewards even if they do not participate in each poll, unless a key "Pendle Protocol Proposal" is presented.

The refreshed setup assigns an algorithm to handle token distribution. This is set to lower PENDLE output by about 30% and to improve the distribution of rewards to pools with higher activity.

Holders of vePENDLE tokens will also get a loyalty benefit when their amounts are captured on January 29. Depending on how much time remains on their lock, holders may earn up to 4 times as much "virtual sPENDLE".

World Liberty Financial recently proposed allocating 5% of its WLFI treasury, about $120 million. What is the goal of the initiative? Read the full story.