Abstract

This proposal implements the changes defined in Penpie’s PIP-19, introducing a revised allocation model for both base rewards and vote rewards in line with Pendle’s newly introduced Dynamic Pool Incentive Caps. With this proposal, vlPNP voter rewards will be paid in USDT, with PRT’s share funded from base revenue rather than deducted from voter rewards. The aim is to enhance Penpie’s performance, optimize revenue, and support long-term sustainability, while maintaining alignment with the framework set in PIP-15.

Motivation

Pendle’s new mechanism adjusts incentive distribution toward high-efficiency pools that generate greater swap fees. To remain aligned and competitive, Penpie must update its revenue allocation strategy. This update will:

• Direct votes more effectively toward high-yield pools, improving capital efficiency.

• Increase vlPNP utility by allowing holders to earn voter APR directly in USDT.

• Boost YT minting activity, leading to deeper liquidity and higher trading volumes.

• Raise base protocol revenue via increased AMM swap fees.

• Increase mPENDLE buybacks, as shown by June’s simulated data (+$28,178 more mPENDLE repurchased compared to the current model).

Read PIP-19 for full details.

Specification

vlMGP holders will vote:

• YES — Support Penpie’s updated revenue allocation model to optimize voter rewards, increase buybacks, and maintain alignment with Pendle’s incentive framework.

• NO — Maintain the current revenue allocation model.