Foresight News|Jan 27, 2026 09:40
[Pendle: New Algorithmic Incentive Model (AIM) to Launch on January 29, Reducing Emissions by Approximately 30% and Significantly Improving Efficiency]
Foresight News reports that Pendle announced the official launch of its new Algorithmic Incentive Model (AIM) on January 29 at 8:00. The model will reduce emissions by approximately 30% and significantly improve efficiency. Emissions will be automatically allocated based on the actual market contributions of each project to the protocol and its users, with allocation weights referencing TVL and fee revenue.
New liquidity pools can receive higher incentives based on total value locked (TVL) to promote liquidity growth. Over time, the focus of incentives will shift toward fee revenue. Protocols can amplify rewards through their own external incentive measures, and Pendle will provide up to an additional 40% in incentives. Furthermore, Pendle stated that with the removal of the ve incentive boost mechanism, the annualized yield for LPs is expected to increase, especially for liquidity pools with higher trading volumes.
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