⚡️ vePENDLE officially exits the historical stage, and @pendle_fi has updated the LP incentive model accordingly——

The algorithmic incentive model is now live, and the overall APR for LPs is expected to increase, making it more profitable for everyone to be an LP in the future!

The new model mainly shifts the incentive distribution from "human selection" to "data-driven," focusing on just two metrics: TVL and transaction fees.

The algorithm will dynamically allocate weights between the two, automatically deciding where to direct incentives, with no need for manual intervention throughout the process.

In the early stages, it will lean more towards TVL to guide liquidity in; later on, it will gradually shift towards transaction fees to reward actual trades.

Thus, this model essentially forces the profitability of LPs to return to the selection of pools themselves.

The larger the trading volume and the higher the transaction fees of a pool, the more willing the model is to continue providing incentives; less popular pools will not be sustained indefinitely, and incentives will be automatically withdrawn.

This not only fundamentally improves incentive efficiency but also reduces waste for Pendle, with an expected reduction in $PENDLE emissions by about 30%.

Under the logic of the strong getting stronger, the operational strategy has actually become simpler:

👉 Focus only on actual trades, prioritizing LPs in the pools with the most active trading in the current period.

Additionally, although ve-boost is gone, if external protocols are willing to contribute funds, Pendle will also provide joint incentives, potentially leveraging up to 1.4X the rewards.

For those who are long-term LPs, the rewards from a single pool will be greater than before, representing a significantly more worry-free and predictable change!

👉 You can join Pendle's Chinese community to learn more about the LP strategies from the experts: https://t.me/PendleFinance_CN

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