The introduction and details of vePendle are compiled from the post published by Pendle Ambassador Vinc in the Pendle Chinese Community Essence Area. Welcome to exchange and learn.

Many friends asked me today: Labrin, how to lock up Pendle? My Pendle costs a few tenths of a pendle, and it has been idle since last year.

Me: Huh? Then you missed out on: Pendle Rush event, pendle lock voting income... The income from these opportunities basically paid off. 🤣

But it doesn’t matter, today’s tutorial will teach you how to lock up Pendle step by step and get benefits. Before reading this tutorial, please consider whether this strategy is suitable for you:

  1. Suitable for long-term Pendle holders, because after locking up, you have to wait until the time you set to withdraw.

  2. Suitable for friends with a certain amount of funds: Because the interaction occurs on the main network, the income must reach a certain scale to cover the interaction costs.

If it does not meet the requirements, you can also obtain benefits through the Pendle protocol. 🥰

If you think you fit the description, please read on. ✔️

1. What is vePENDLE 🧐

vePENDLE is based on a special mechanism in the Pendle protocol. Users can obtain vePENDLE by locking PENDLE tokens, which represents the governance rights of the holder.

This is not a tradable token, but a proof of stake used to participate in the governance of the protocol, obtain dividends, and increase the returns of the liquidity pool you hold. 💰💹

The main sources of income include:

1️⃣ YT token interest as base income: vePENDLE holders can receive 3% of all YT interest income.

2️⃣ Income from voting on the pool: The annualized income calculated by voting on the pool is 80% of the transaction fee (swap fee) of the selected pool.

3️⃣ Additional bribes that pools may have: additional rewards to encourage vePENDLE holders to vote for specific liquidity pools.

4️⃣ If you provide liquidity to the pool, you can get incentives: you can get a higher APY for the liquidity you provide on Pendle. For example, the liquidity income of crvUSD can be increased from 30% annualized to 67% with the support of vePENDLE.

Liquidity provision incentives

2. How to lock Pendle for vePendle

Preparation in advance: On-chain wallet, transfer pendle to Ethereum network, Ethereum network needs ETH tokens as interaction fee (gas is quite cheap recently)

1) Open the Pendle welcome page and click on the upper right corner to enter the APP

pendle welcome page

2）在顶部标签选择我们的老朋友vependle

Select the vependle tab at the top

3) After entering the page, select Lock Pendle

Select Lock Pendle

4) Lock page tutorial 🔒📄

Please refer to the red steps. 🔴⬇️

Things you need to know, please read carefully before locking:

1️⃣After locking up, you need to wait for the set time to unlock. After unlocking, you can withdraw all locked Pendles. The longer the lock-up time, the more vePENDLE you will have. ⏳🔑

2️⃣vePENDLE is not a tradable token, but a proof of stake. 🛡️

3️⃣The vePENDLE shown in the figure is the amount of vePENDLE in the first week. The amount of vePENDLE decays linearly, decreasing every week until the expiration time is 0. 📉📆

4️⃣The Based APY in the figure is: YT token interest deduction as basic income; Max APY is Based APY plus voting income. 📊💹

Lock your Pendle

5) Now you have locked Pendle. Next, check out the voting tutorial.


3. How to vote 🗳️

On the Pendle platform, the main benefits for vePENDLE holders are

  1. Profits from voting on the pool

  2. If you provide liquidity to the pendle pool, you can get a higher annualized return

Now we focus on voting benefits!

🛹During the voting process, vePendle is allocated to different pools. Voting ends every Wednesday at 23:59:59.9999 UTC+0.

1) Select the Voting tab at the top

Select the Voting tab

2) How to choose a pool with good returns to vote 🍰

The voting process can be understood as choosing a cake shop to eat cake:

  • Trading volume: The higher the trading volume, the bigger the pie in the pool. 📈🎂

  • Popularity: The more people participate, the more people will share the cake. Even if the cake is big, the amount shared may not be much. 👥🍰

那怎么办呢？这里有一些比较稳妥的策略：

  1. Refer to the current rate of return：
    Vote for the next period based on the current yield. 📊🔍

  2. Diversify your risk：
    Don't put all your eggs in one basket. In the next round of voting, distribute vePENDLE to different pools according to the current revenue ranking. 🥚🥚🥚➡️🧺🧺🧺

Voting benefits

Disclaimer

This tutorial is for reference only and does not constitute any investment advice. Cryptocurrency investment is high risk and may result in the loss of all principal. Please assess the relevant risks yourself and consult a professional advisor before making any investment decisions. Any benefits and returns mentioned in this article are only examples and do not guarantee actual results. Users are solely responsible for any consequences or losses arising from the use of this tutorial. Investment is risky and caution is required on the chain.