Pendle Launches sPENDLE: Liquid Staking Replaces vePENDLE to Boost Liquidity
Pendle has launched sPENDLE, a liquid staking token designed to replace the legacy vePENDLE governance reward model. sPENDLE maintains governance utility while introducing liquidity and composability: after a 14-day cooldown following a lock, holders can withdraw at any time and use sPENDLE across lending, DEXs and restaking strategies. The change addresses vePENDLE’s long lock-induced illiquidity and aims to improve capital efficiency and user flexibility. sPENDLE supports integrations with external DeFi protocols, enabling holders to earn governance rewards while deploying their staked position as collateral or into yield strategies. Pendle will provide a migration path for existing vePENDLE holders. Market metrics to watch include percentage of PENDLE supply staked into sPENDLE, sPENDLE usage in external DeFi (lending, pools, restaking), and changes in TVL. For traders, key takeaways are potential upward pressure on PENDLE demand if composability increases utility and TVL, short-term volatility around the migration announcement and liquidity shifts, and longer-term effects tied to adoption and on-chain usage.
Bullish
The launch of sPENDLE is likely bullish for PENDLE over the medium term. Liquid staking tokens typically reduce the illiquidity premium and attract more participants by allowing capital to be reused across DeFi — increasing demand and TVL. sPENDLE’s composability (use as collateral, in pools, and for restaking) creates new on-chain use cases that can elevate utility and token velocity, which historically supports higher token demand (examples: LDO/liquid staking derivatives on EigenLayer or stETH on Lido increased protocol utility and attracted TVL). Short-term effects may include volatility as holders migrate and reallocate positions; some selling pressure could occur if locked tokens exit or are used as collateral that drives liquidations. However, if migration is smooth and adoption metrics (staked share, TVL, external usage) rise, that points to sustained demand and a bullish structural shift. Risks that could limit upside include poor migration UX, security issues in integrations, or lower-than-expected composability adoption, which would mute positive impact and could cause neutral or negative price reactions.